Retirement Planning

What You Need to Know about Retirement Planning

Planning for retirement is intimidating, especially if you’re worried about your ability to cover your expenses when the paychecks stop coming. Fortunately, you don’t have to navigate this tricky process alone. As your retirement advisors, we’re here to help you save for your future and plan your retirement distributions. 

Retirement planning is more than setting up a retirement account and making contributions to it. You also want to work with a financial specialist to manage your portfolio and help minimize risk. Choosing the appropriate investment vehicles, managing your assets, and overseeing your portfolio performance are part of investment management. When it’s time to retire, you also want a financial professional to help you create an income distribution plan while helping to preserve your wealth for you.

It’s Not Too Late to Plan for Your Retirement

You may wonder if it makes any sense to plan for retirement if you’re near retirement age. While you may want to start in your 20s in an ideal scenario, it’s still possible to make a difference for your financial future when you’re much older. We can help you evaluate your situation, your current retirement accounts (if any), and create a plan that can work towards your financial future.

Naturally, there are challenges with planning for retirement later. You won’t have the luxury of time to harness the power of compound interest. But there are still options to build significant wealth by taking advantage of catchup contributions, maxing out all your retirement accounts, and setting up additional investment accounts. We can even help you minimize your tax burden in the process.

Navigating Medicare, Medicaid & Long-Term Care Insurance

Most people are eligible for Medicare by age 65 as long as they’ve made Medicare payments through their paychecks for at least 10 years. Medicare can help cover many of your healthcare costs during retirement. In comparison, Medicaid offers free or low-cost healthcare to families with low income who may also need to meet other criteria to qualify. 

Long-term care insurance can pay for expenses not traditionally covered under your healthcare plan. These include an assisted living facility, an in-home health service, and physical rehabilitation services. It’s our job to help you determine the best course of action to protect yourself and your financial assets. Without adequate insurance coverage, you may end up using your retirement savings for medical expenses instead of covering your cost of living.

FAQs about Retirement Planning

How Do I Start Planning for Retirement?
We make it easy to start planning for retirement. Simply call our office to make an appointment. We’ll go over your current financial situation, your existing retirement accounts and assets, and your goals. We also consider your living expenses, your timelines, and your risk tolerance before we put together a retirement plan that works for your situation.

Where Should I Put My Money When I Retire?
We don’t recommend making withdrawals from your retirement account without making a plan first. The goal is to create a dependable income source for you while preserving the rest of your wealth. For example, you can use annuities to create a fixed income stream that resembles a paycheck and allows you to pay your bills.

How Can I Estimate My Expenses in Retirement?
It’s difficult to estimate your living expenses during retirement because there are a lot of variables. For example, you may not know how much you’ll spend on healthcare when you switch to Medicare coverage. Fortunately, we can help you create a financial plan that considers the expenses you will have when you retire.

How Can I Prepare When Retirement Is Imminent?
If retirement is imminent, it’s important to think about where your income will come from. Most people receive a mix of Social Security income, employer-sponsored plan distributions, IRA withdrawals, and personal savings and investments. We can help you decide where to take distributions from to help maximize your net earnings and seek to  preserve your wealth.

We Help You with Retirement Planning

Let us help you plan for your retirement now. Don’t wait any longer to prepare for your financial future. We’re here to answer any questions you may have and help you make appropriate investment decisions for your money. Call us today to schedule your appointment.

For more information about our firm and the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you.

diane.chamberlain@lpl.com | (605) 722-1575