When helping people get ready for retirement,
financial advisors find the same issues come up over
and over. Thinking ahead can spell the difference
between a successful retirement with enough money
and a stressful one with difficult decisions that you
don’t want to make. Here are 7 retirement
considerations that every investor should think about:
1. Understand Social Security. The goal with Social
Security is not to get the most you can from the
government in your lifetime. It is to optimize the
amount you receive per month when you finally retire.
The earliest age you can start Social Security is 62. If
you retire at 55 or 60, then you might want to claim it
as early as you can. But if you plan to work past 70,
like many, there is no reason to take Social Security
before then. Doing so reduces the amount you can
receive at your full retirement age (66 for baby
boomers born before 1954). You can have a very nice
bump in your benefits every year you postpone taking
Social Security. That bump is often a better deal for
you than starting early and taking the most money
2. Are you going to work after you retire? Your
retirement might not be retirement. It could be about
doing something different. For you, this might mean
you take on part-time work, perhaps in the industry
you spent decades in, or in an entirely different field. It
brings extra money and occupies your time. If this is
what you want, then factor it into your plan.
Hopefully, if you decide to work, it’s because you want
to, not because you are short on income and have to.
That’s where the strength of your regular savings
3. What happens if you get really sick? No one
likes to think about it, but a major illness can upset
even the best financial plan. You need to consider
what will happen to your life if you are incapacitated.
Medicare doesn’t cover all your health-care expenses,
like nursing homes. There’s a good chance that you
need to pay for uncovered extras, but lack sufficient
income during the worst of your illness. What would
you do if that occurs?
4. Where do you plan to live? The place you spent
your working years may be too costly in retirement.
Plenty of lists exist of good locales to move to. What if
your business didn’t do as well as you planned, and
you sold it for less money than you expected? Maybe
you will have to move to a less expensive state,
where you could continue to live as comfortably as
before? Uprooting your household will cause you
some inconvenience, but maybe not so much that you
have to seriously change your lifestyle.
5. You’re going to feel funny not working. Not
going to work every day takes some adjusting. You
might feel lonely. Your phone is going to ring much
less. The people you spent tons of time with just fall off the map. You might feel that no one likes you.
These are called the retirement blues. You might think
you are prepared for all those newly empty hours, but
most retirees are not.
6. Timing could make or break you. If the market
melts down in the first few years of retirement, you
likely will have much less money than you planned,
and you have to spend your nest egg faster than you
expected. It is only good planning to stress-test your
finances by assuming you lose money at the outset of
7. Do a financial plan. You need one to prepare for
the best and the worst possible outcomes. Part of that
process is scenario analysis that gives you an idea of
how much you stand to lose under the worst case.
Test your portfolio to make necessary adjustments.
You might decide to postpone retirement, or to
change your retirement goals.
Doing a financial plan once is not enough. Every year,
you need to dust off the plan and go through the tests
all over again. What you don’t want is to get to
retirement and find out your assumptions never came
true. That is unless you like potentially nasty
Let’s arrange some time to discuss these 7 retirement
topics. Because there are a few more that you should
Important Disclosure Information
The article above was provided to Synovus by eMoney Advisor, LLC, and is used here with permission from eMoney or a third party content provider. eMoney does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. This information was provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
You are about to leave the Synovus web site for a third-party site
Third-party sites aren't under our control, and we are not responsible for any of the content or additional links they contain. We don't endorse to guarantee the goods or information provided by third-party sites, and we're not responsible for any failures or inaccuracies. Third-party sites may contain less security and may have different privacy policies from ours.