Retirement planning can be an anxiety-inducing process for many, but it doesn’t have to be that way.
In our 50s and 60s, the mindset is to save up for retirement. Investments are catered toward appreciation, can handle some volatility, and there is still time to save. Some people know where every penny is; some are not exactly sure what their money is invested in.
It’s often hard to find the time to properly plan for retirement when you’re in the thick of a demanding career. Yet the need to feel secure, comfortable and prepared for the future may be quite overwhelming. This is where a well-rounded approach to retirement planning is especially helpful, and even enlightening.
It can be difficult to answer questions such as:
How are my investments doing? Could they be doing better?
How much can I draw from my savings?
How long will my money last?
There’s a reason why these questions are difficult to answer on your own. The process of creating a complete inventory of finances is daunting, and there are many variables to these questions. However, contrary to popular belief, many people find that retirement planning actually becomes a cathartic exercise that helps to bring clarity to future plans.
One way to have a more enriching and inspiring retirement planning experience is to begin aligning your financial advice, your investments, and planning needs with what is most meaningful to you. An ideal financial planner would guide you in this journey. Look for an advisor with the advanced planning CFP® credential and someone who is held to a fiduciary standard. A fiduciary should offer objective, unbiased financial advice with a focus on your financial wellbeing, putting your needs and interests above everything else. Look for a whole-person approach, as opposed to solely working with spreadsheets and budgets, because it’s more than “just numbers,” solid financial planning also involves mapping out dreams to fulfill goals.
A financial planner can help you:
Identify and articulate what is most meaningful to you and your future
Organize and analyze your current income, future income, fixed expenses, variable expenses, pensions and annual spending
Estimate how much money you need going forward, and how much your savings and investments may be able to generate
Assist you in overcoming obstacles, perceived or actual, that may be in the way of reaching your goals
Simplify your financial life. An extension of financial planning knowledge in your corner can greatly reduce anxiety and uncertainty.
Answer questions and support you during any transitional life phases
Using advanced cash flow analysis, a planner can help you answer lifestyle questions such as:
Can I buy a second home in a warmer climate?
What does this do for the longevity of the cash flow?
What is the probability that I can maintain my current lifestyle and not feel stressed?
Once a solid base of information is built, it’s amazing what the data can do for you. Estimates and guesswork are eliminated. Stress tests are performed, to account for market fluctuations in good years and bad years. Technology-based programs run the data and provide reports based on variables that could potentially affect your retirement funds.
Not only can this process help alleviate fears, but it is very empowering. You can now make decisions feeling mindful, educated and prepared.
TrinityPoint Wealth, LLC (“TrinityPoint”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of TrinityPoint by the SEC nor does it indicate that TrinityPoint has attained a particular level of skill or ability. This material prepared by TrinityPoint is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. TrinityPoint does not provide tax or legal advice, and nothing contained in these materials should be taken as tax or legal advice.