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5 Questions You Need to Answer before You Retire

Planning Matters Radio / Peter Richon
The Truth Network Radio
June 15, 2024 9:00 am

5 Questions You Need to Answer before You Retire

Planning Matters Radio / Peter Richon

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June 15, 2024 9:00 am

To design your ideal retirement, you need to start with a few specific questions... and if you're married, make sure you do this exercise together! In this video, Peter Richon with Richon Planning and Erin Kennedy walk through what you should consider when answering these vital questions:

1. When do you want to retire? 

2. Where do you want to live when you're retired? 

3. How is your health?

4. How much could your Social Security benefits be?

5. Do you have a financial plan?

Because retirement is so much more than just a number in your bank account, working with a financial professional can help you define and build your ideal retirement. If you'd like to talk through your unique goals and objectives in retirement, please give Peter a call at (919) 300-5886 or visit

#WealthManagement #Retirement #SocialSecurity #FinancialAdvisor


Peter, good to see you.

Welcome back, everyone. Today we are talking through five questions you need to answer before you retire. To design your ideal retirement, you need to start with a few specific questions.

And if you're married, you really want to do this exercise together. So first question, when do you want to retire? Yeah, that's a good one. And I think we'll move through those five big questions, right? Who, what, when, where, why, how. We know who.

It's you. When do you want to retire? When do you want to retire?

That is a big question. And if you want to retire before full retirement age or maybe traditional retirement, you need to do some extra careful planning. You need to think about how you're going to bridge the gap with medical expenses before Medicare kicks in, how you're going to bridge the gap with income, perhaps even before you can touch those traditional retirement accounts if you plan on doing it before 59 and a half. But certainly if you do it before you plan on claiming and collecting Social Security, when and how are you going to do that? And so I don't think that your age is an arbitrary number that indicates that you are truly financially prepared for retirement. But if you want to earmark an age out into the future to aspire to and shoot for and plan around, I think that is a good thing because it gives us a rough time frame of how long we have to build and grow that savings and then what we are going to need from that savings when we get there.

Right, of course. And then moving through those double W's, as you said, where do you want to live when you're retired? Cost of living can vary wildly.

Yeah, from from city to city within your state or from state to state and then the tax implications. Are you going to stay in the current home that you are in? Do you plan on relocating? I find that a lot of people do plan on relocating in retirement at least once, and they seem to have a perception that they're going to net this windfall when selling their current home.

I sort of caution against that. I don't usually look at the assets in the home, the value, the equity as investable, because what I have found is that when people do downsize, they tend to upgrade into the latest, newest and greatest, and they view it as their forever home. So they want it exactly how they want it. So a lot of times the cost is a little bit more, even if it's a smaller home. Do you want to live around the kids or the grandkids or maybe are you going to change states, those kind of things? I do caution around making big location decisions based on the kids or the grandkids, because oftentimes kids and grandkids are in a more transient period in their life cycle and may take job opportunities that aren't right where they once were. So just be careful and cautious about making too big a financial type of decision based on relocating around kids or grandkids. Think through that one very carefully.

Next of course, how is your health? Keep in mind, healthcare is often your biggest expense in retirement. And then of course, there's the cost of long term care. The cost of long term care can be a scary one. That's kind of the 600 pound gorilla in the room, if you would, that really anybody's financial plan needs to address this in one of a couple ways. Either we've got dollars earmarked off to the side that we're never going to touch, and that is our health care protection, or we've got some kind of linked benefits with life insurance and or annuities, or we've got traditional long term care. But if we don't have those, the question is, you know, who are we going to depend on, our family or the government?

Nobody really wants to do either of those. So yeah, we've got a plan specifically and even without the long term care element, health care costs in retirement are traditionally typically very often underestimated. I've seen stats and statistics on this that it can be in the neighborhood of several hundreds of thousands of dollars over the course of retirement that an average 65 year old healthy couple pay just in premiums and deductibles and copays and routine doctor visits and such. So you add on the long term care from there and you threw a little calculator up there looking at the future of the potential cost of long term care is scary. So we need to try to account for these potential costs as best we can. And it's got to be part of the retirement planning picture. Yeah, obviously don't eat away all your savings if you don't have it as part of your plan. And of course, you need to determine how much your Social Security benefits could be. This could be one of the most important financial decisions you make in retirement.

Sure, or or how much they're not going to be right. It's like Social Security does not account for everything that everybody spends in retirement. In fact, it's typically less than half of what people need to cover life expenses and consider that Social Security was never meant to provide for a stable secure very confident lifestyle in retirement. It was intended to prevent poverty and many many years ago. Perhaps it kept us just above the poverty line the average Social Security check today. I don't know goes as far and when inflation happens. Yes Social Security receives a cost of living adjustment. But if my Social Security for instance is $2,000 a month and my cost of living is $4,000 a month only half of my income received that cost of living adjustment. So I did not truly keep up with inflation and then we look out at the Social Security Social Security Board of Trustees annual reports their most recent one stated that in 2033 Social Security only projects out to be able to pay 75 cents on the dollar of promised benefits.

So how are they going to address that shortfall? So long and short of it you need to make the most out of your personal individual Social Security and the longer that you wait to claim and collect all the way up until age 70 the more that you will receive but how does that play in and coordinate with the rest of your financial and retirement picture but certainly want to try to make the most out of that lifetime Social Security income benefit. And because retirement is so much more than just a number in your bank account you need to determine if you have a holistic financial plan that accounts for inflation longevity and of course your very unique and specific retirement goals.

Yeah what is your most valuable investment? I think it's the plan itself having a plan. The plan will help you determine and dictate and really indicate where certain tools and certain accounts and certain investments or assets and streams of income are to be generated or kept or where they're coming from. So the plan is really what brings everything all together cohesively and coordinating things like Social Security income and withdrawals from investments or retirement accounts and then tax planning health care planning legacy planning so every financial plan I think every individual should a have a written plan for retirement specific to their circumstances and their goals and their timeline their situation but be every one of those plans should address at least five high-level items which are income investments taxes health care legacy there are a lot of subcategories under each one of those but if your plan does not address all of those then you could be missing a large part of the retirement picture and during our working career a lot of us have a plan that addresses investments which is the most important thing because income and taxes and health care are often sort of taken care of with our paycheck but as we make the transition to retirement it's important that you have that plan we call it the optimized retirement plan that is the specific written plan that we put together for clients or proactive planners and savers here at Rashaan planning and happy to put that together for anyone listening or viewing the podcast and video today right well again this is a fun exercise but also an important exercise to walk through especially again if you're married to have this conversation early Peter if somebody would like to talk through these questions with you how can they reach you give us a call at Rashaan planning nine one nine three zero zero five eight eight six nine one nine three zero zero five eight eight six you can also visit online looks like rich on planning dot com it's Rashaan planning dot com you can email me peter at Rashaan planning dot com however you'd like to be in touch but uh you know get that plan put together help answer these five questions and it's super beneficial to do that before you retire not waiting until the day after absolutely Peter thanks so much for your time today always a pleasure thank you everyone Peter Rashaan here hope you enjoy the content as always make sure that you like subscribe share the videos with others that may find this information helpful and as always you're welcome to be in touch or to submit questions or comments you can comment below the video anything that you'd like to see or hear shared on our youtube channel and in future videos if you got a topic that you've been thinking about or is of concern for you financially be sure to let us know we'd love to help you by discussing it on the channel so appreciate the continued views and the likes and the subscribes the shares the comments always helpful we look forward to getting you the information that you need this has been planning matters radio the content of this radio show is provided for informational purposes only and is not a solicitation or recommendation of any investment strategy you are encouraged to seek investment tax or legal advice from an independent professional advisor any investment and or investment strategies mentioned involve risk including the possible loss principle advisory services offered through brooks own capital management a registered investment advisor fiduciary duty extends solely to investment advisory advice and does not extend to other activities such as insurance or broker dealer services advisory clients are charged a quarterly fee for assets under management while insurance products pay a commission which may result in a conflict of interest regarding compensation Peter Rashaan and Rashaan planning are not affiliated with nor endorsed by the Social Security Administration or any other government agency.
Whisper: medium.en / 2024-06-15 10:09:43 / 2024-06-15 10:14:01 / 4

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