Most of us are diligently saving for retirement, but many may not have a comprehensive income plan in place. Nicholas J. Colantuono, CFP® joins Better Money Boston to discuss the importance of having a roadmap and a plan. It is perhaps the number one stress reliever when it comes to retirement planning.

When you’re working and earning money, saving is key because every two weeks, something magical happens: you get paid. However, when you retire, that paycheck stops. What doesn’t stop are the bills, the mortgage payments, and the gas bill.

Replacing that income stream is crucial, which is why having a comprehensive plan is necessary.

Income: The Backbone of Your Retirement Plan

It’s all about income—taking your various sources, whether it’s Social Security, dividends, or investments, and creating a coordinated strategy for when and where you’ll get your hands on money as you need it. This also leads to the bigger question around assets. What type of strategy do you have when it comes to your investment accounts, IRAs, and 401(k)s? How are those buckets being managed, and what’s your plan for tapping into them?

Healthcare: A Critical Consideration

Healthcare is another important consideration. Once you retire, you’re no longer covered by employer plans and must navigate Medicare. There are regular checkups and preventative visits, and potentially emergency surgeries. As you age, long-term care needs, memory care, and dementia planning become crucial. Having a plan in place for these “what ifs” is essential.

Taxes and Legacy Planning

Let’s talk about two big topics: taxes and leaving a legacy. Taxes are important because they represent a ticking time bomb within retirement accounts. Nobody knows better than Uncle Sam that you haven’t paid taxes on the money you’ll withdraw in retirement, so creating a tax-efficient strategy for accessing those accounts is critical. Additionally, when it comes to leaving money behind, your legacy plan matters. How much of that money will go to the IRS, and how much will go to the people you care about?

Blueprint for a Stress-Free Retirement

As you can see, having a comprehensive income plan is essential for a successful and stress-free retirement. From income and asset management to healthcare considerations and tax planning, each component plays a vital role in ensuring you have the financial stability you need. Begin planning today and consult with your financial advisor to secure your future and achieve your retirement goals.