There is often an initial scramble that comes during the transition from 30+ years of dutiful employment to retirement. Some may pick up new hobbies, while others may pursue lifelong dreams or continue doing part-time work to fill the new void in their daily schedules. Regardless of what your retirement plan might be, it is critical to ensure that your financial wellness is secured in order to get the most out of your retirement.
January is Financial Wellness month, and with it comes a new opportunity to ensure your financial security in the coming year. Whether you or a loved one has retired, or if they are preparing to retire, SSR Law Office is here to help at every step of the way to ensure your lasting financial wellness during retirement and beyond.
Maintaining Your “Nest Egg”
It can be hard to say how much money is “necessary” to retire. According to the AARP, conventional wisdom says to save between $1 million to $1.5 million, or that your savings should equal 10 to 12 times your preretirement income. With retirees living longer lives and seeking to do more during retirement, however, it might not be enough to just save a “stock amount.”
Unforeseen expenses coupled with increasing travel expenses and inflation costs can quickly deplete a retiree’s financial reserves. But with careful planning and financial wellness in mind, the most can be made out of your retirement regardless of the size of your nest egg.
The AARP provides a thorough resource guide for retirement planning, including travel deals and tax advice for members. We also recommend reaching out to an attorney who specializes in financial preservation to explore the options available to your or your loved ones for maintaining financial wellness during retirement.
A late-life topic that can help achieve financial wellness is the decision to create an estate plan. In simplest terms, an estate plan is an arrangement for assets and debts upon your incapacity and/or death. An “estate,” per se, is not just your home; it includes your personal property, your bank accounts, personal debts, and more.
Perhaps two of the most well known aspects of estate planning are a person’s will and trusts. By creating an estate plan, writing a will, and assigning trusts (if applicable), you can ensure that your financial wellness is established and secured for both yourself and your loved ones during (and after) your life.
At Schock Solaiman Ramdayal, PLLC, we are a team of trusted estate attorneys dedicated to understanding your interests and objectives in order to create a complete estate plan that is customized to your unique needs. We encourage you to explore all of the options you have in securing your assets, and we are here to answer any questions you might have.
Avoiding Costly Mistakes
Mistakes happen, and retirement is no exception to this. While some mistakes that might have resulted demotions or firings might not be an issue any longer, a new crop of potential mistakes can turn your relaxing retirement into a period of financial woes.
According to Julia Valentine, author of Joy Compass: How to Make Your Retirement the Treasure of Your Life, there are four common types of mistakes that retirees often face while planning their finances, including:
- Replacing financial advisors with family members.
- Having an inadequate long and short-term plan.
- Turning a blind eye to the possibility of scams.
- Keeping a portfolio stagnant.
By remaining vigilant and keeping account and estate information up-to-date, your finances can be safeguarded against any unforeseen circumstance to maintain lasting financial security during your retirement. Discussing your wealth preservation options with an experienced attorney can ensure that your finances remain secured and kept in-balance with your long-term retirement goals for decades to come.