Are You Ready To Retire? 3 Things To Consider First

By Marjorie L. Rand, CPA, CFP®, RICP®

You’ve saved diligently for years, are at the pinnacle of your career, and are getting ready to make the transition into retirement. Congratulations! At the same time, you may be wondering if you’ve done everything you can to prepare to retire successfully. Addressing the following vital areas before you take the leap into retirement will help you get started on the right track.

1. Do You Have A Strategy For Your Investments That Will Carry You Through Bear Markets?  

Talk to your financial professional to ensure a plan is in place if a bear market strikes. When you are younger and accumulating savings for retirement, you have time on your side to make up for any losses in challenging market conditions. It is much more important to focus on preserving your assets in retirement since time is no longer on your side. Make sure your investments are allocated correctly, and you have a plan in place next time the market takes a turn for the worse. Also, make sure your portfolio will generate a return that will keep up with inflation without exposing you to too much risk in retirement.

2. Do You Have A Strategy For Long-Term Care?

Long-term care is one of the things people overlook most in retirement. Nothing can drain your retirement savings more than dealing with a debilitating medical condition without any coverage. Make sure you have a long-term care strategy in place before retiring. Doing so will help preserve your savings if you need help with long-term care or with daily activities. Talk to your financial professional about establishing a long-term care strategy tailored to your needs.

3. Do You Know What Your Expenses Will Be In Retirement?

Try to gain a realistic idea of what your expenses will look like in retirement. You’ll have a lot more time on your hands, so think about the types of activities or hobbies you’ll be pursuing. Travel, entertainment, and medical expenses are some of the most common that will increase. Make sure to be conservative in your estimates; it is better to overestimate because other costs you may not have thought of will come up as well. Factor in expenses you don’t have to pay for now but will be paying for in retirement, such as health insurance. Adding up these expenses and comparing them to your net income will help you understand the lifestyle you will be able to achieve. Talk to your financial professional or use a retirement income calculation tool to see if you are on the right track. Keep in mind the taxes you must pay on income and investments in retirement as well. Work with a tax professional to ensure you are prepared to handle those emerging taxes in a way that is advantageous.

We’re Here To Help

Retirement planning doesn’t stop once you retire. It’s more than just investing and saving. It’s about looking at your full financial picture, including cash flow, insurance, and tax planning, while also understanding what hazards may lie ahead. Consider seeking advice from a professional who can walk you through these critical decisions. 

We at Rand Financial Planning are here to help you. Schedule a 20-minute introductory call or reach out to us at 908-895-2406 or marge@randfinancialplanning.com to see if we are the right firm to help you on your journey to retirement and beyond.

About Marge

Marjorie Rand is founder and financial advisor at Rand Financial Planning, a comprehensive, fee-only, fiduciary financial planning firm. Marge specializes in helping her clients plan for a secure retirement and navigate life’s many transitions through customized, tax-efficient retirement planning. She is passionate about empowering her clients to make the best financial decisions for their life and being by their side no matter what life throws at them. Marjorie spent many years as a CPA before founding Rand Financial Planning so she could be a go-to source for all her clients’ financial needs and help them avoid costly mistakes. She has a bachelor’s degree in accounting from Rutgers University and a Master of Science in Taxation from Fairleigh Dickinson University, along with the Retirement Income Certified Professional® (RICP®) and CERTIFIED FINANCIAL PLANNER® (CFP®) designations. When she’s not working, Marge enjoys boating, horseback riding, traveling, and hiking with her husband and her dog, Rangeley. To learn more about Marjorie, connect with her on LinkedIn.

This content is developed from sources believed to be providing accurate information and is provided at least in part by Twenty Over Ten and other sources. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Original content of Rand Financial Planning, LLC. only is copyright © 2021 by Rand Financial Planning, LLC. All rights reserved