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[Excerpt] For many folks who spend their entire careers following a financial plan, saving and investing isn’t just a commitment, it’s a mindset. And it can be very challenging for these seniors to switch from a “saving” to a “spending” mindset once they do retire. It’s almost as if they can’t give themselves permission to enjoy their own money!
If that sounds like you or your spouse, here are three questions you can discuss with your advisor to help you get a greater Return on Life from your retirement assets.
1. Am I going to outlive my money?
Running out of money too soon is probably the number one concern among retirees who are living far below their means. No senior wants to become a burden to their adult children or face a sudden health our housing crisis that breaks the bank.
While a financial advisor can help you make more detailed projections, an easy first step is to start scaling back on unnecessary expenses as you enter retirement. Cancel subscriptions and memberships you aren’t using. Get your grown children off your cell phone plan. Sell that second or third car you never use. And pay down high-interest debts such as credit cards.
Now you can create a monthly budget. Don’t forget to include your new health care premiums, whether that means Medicare or private insurance you’re buying until you turn 65.
Finally, compare your monthly expenses to your annual withdrawal rate and any income you’ll be earning from part-time work. For some added peace of mind, consider adding an emergency savings account to your retirement plan that includes enough cash to cover six months to a year of expenses. And if you don’t like how these numbers add up, talk to your advisor about what adjustments you can make.
Click here to learn more about ROL Advisor’s digital discovery tools, then sign up for a 7-day trial to become a better Life Centered Financial Planner, and finally, schedule a demo.