Are you someone who has specific goals for retirement or have you not given it a lot of thought yet? Everyone will have a different plan for retirement and no matter what that might be, there are questions that can help you determine what it will take to achieve your dream.
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What You’ll Learn:
When you think about retirement, what do you picture? Will you be on a beach somewhere sipping a Mai Tai? Will you be spending time in a rocking chair watching the grandchildren play in the yard? Whatever that dream looks like, we work with our clients to do everything we can to make it a reality.
The approach we take is a little different than most places. We ask clients to take away all the limitations that could hold you back. If money and time weren’t an issue, how would you spend your retirement? Once we get that answer, we work to build a plan that will help you get there.
So on this episode of the Money Wisdom podcast, let’s go through some of the key areas you need to think about when determining how you’ll reach your retirement dream.
The first question to ask is what will your social circle look like? You’d be surprised how different that might be once you are no longer in a working environment and around groups of people on a consistent basis. Many people lose that sense of purpose if you’re no longer going to an office each day. Many people also become depressed not being around those same people every day. This question is also important because identifying who you will spend most of your time with will also help you determine what locations you could be visiting often. If it’s a country club, for example, you might want to add more to your budget.
The next thing you need to be thinking about is what your eating habits will be when you’re retired? Will you spend more time eating out? Will you cook more? Everyone will have their own preference for this but knowing what that looks like for you will help you get a better grasp of your daily spending.
Now think about what a regular day might consist of. Now that you have all this time at your disposal, how will you use it. Any hobbies you plan to try or any new skills you hope to learn? Getting a sense of what your daily schedule will be a big help.
Let’s talk about your health next. Staying active is critical in retirement so do you have a plan for exercise? Without a place to be everyday and a job that keeps you engaged and mentally stimulated, it’s very easy to become stagnant. You don’t need to put together a five-day-a-week workout plan, but having ways to stay active will benefit you a lot.
Travel is the final thing to be thinking about, and there’s a good chance you already have. That’s a big part of many people’s retirement dream and it’s important to know. Where will you travel? How will you get there? Some travel might look different due to the pandemic so will you travel less? Some people have second homes that they need to plan for.
All of these questions will start pushing you towards a plan that will help you reach that dream. Even if you feel a goal might be out of reach, come in and sit down with us and let’s figure it out for sure. You never know what might be achievable until you look through a comprehensive plan.
Also keep an ear out for the three mailbag questions at the end of the show where we talk about keeping an IRA in cash, long-term care coverage, and why an advisor can still provide you a lot of value even if you’re good with money.
[0:29] – Investing implications to people relocating due to work from home
[3:21] – What’s Joel’s plan for where to live in retirement
[7:13] – Quote of the week
[7:56] – Living the retirement dream
[8:58] – What will my social circle consist of?
[12:23] – What will your eating habits be?
[13:35] – What will an average day consist of?
[15:05] – What will you do for exercise?
[16:11] – Will you be traveling much?
[17:28]– Mailbag Question: I’m anticipating a market crash any day now so I have about half my IRA in cash. How long should I wait before I reinvest it?
[20:04] – Mailbag Question: My husband and I plan on taking care of one another as we get older unless one of us is in extremely bad health. Since this is the plan, how much long-term care coverage do we need?
[21:27] – Mailbag Question: I have an MBA and I understand investments well so I’ve always handled investments myself. In your opinion, is there any reason for me to work with an advisor?
[23:43] – Money Map Retirement Review
Thanks for listening to this episode. We’ll be back again next week for another show.
“People, a lot of times, come up with their dream retirement with a lot of limitations in mind. I like to do it backwards. I like to say what’s that dream retirement, forget about the limitations, and then let’s see if we can come as close to that as possible.”– Joel Johnson, Money Wisdom Podcast
3 Related Items & Resources:
- Replacing Fear with Confidence in Your Financial Plan
- Financial & Estate Planning Questions Facing Families
- Protecting Your Retirement in a Recession
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Thank you for listening!