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Answer These Three Questions to Know What You Really Want Out of Retirement

Answer These Three Questions to Know What You Really Want Out of Retirement

Sharpen Your Focus on What Your Golden Years Mean to You

We’ve talked before about the importance of a written retirement income plan to set you up for an enjoyable retirement free from financial stress. However, there are three baseline questions you need to answer for yourself in order to clarify and solidify your plan. After all, any retirement plan can only be effective if you truly know what you want out of your retirement, right?

Ask yourself the three questions below – and answer them honestly – to sharpen your focus on what retirement means to you. Then, use the added clarity to develop the best-written retirement income plan for you.

Question 1: Why Are You Saving for Retirement?

On its face, this question seems like it has an obvious answer. But, try to think outside the box – this question isn’t about why people, in general, save for retirement. It’s about why you, personally, are saving for this phase of your life.

Is it because you want to feel financially secure above all else? Maybe it’s because you want money to spend in retirement on traveling the world or taking up new hobbies. Or, it’s possible you want to live off the interest and leave your nest egg to your children and grandchildren.

There’s no right or wrong answer. The point is to get to know yourself and your motivations better. This way, you can gain more confidence in writing a retirement plan that lets you enjoy your golden years in the way that you want to.

Here’s an example scenario of how this sort of self-knowledge can come in handy:

Let’s say you and your financial advisor run an income analysis and you see that you can spend $1,500 more per month than what you’re likely to need on necessary living expenses. What are your plans for that extra money? You could save it for a rainy day, spend it having fun, or in any other manner that suits your goals. If you’ve already taken the time to examine your underlying motivations for saving, you can make the decision that best suits your retirement lifestyle.

SEE ALSO: Your Roadmap to Success: A Comprehensive Written Retirement Income Plan

Question 2: Do You Have Concerns About Paying for Long-Term Care?

If you’ve done any research at all, you know that long-term care can be very expensive – and that nearly 70% of retirees will need it at some point. So, which camp do your find yourself in?

  • You’re planning ahead to factor long-term care insurance into your retirement plan.
  • You aren’t worried about it – you’ll get care in a Medicaid facility if needed, even if the Medicaid spend-down means no nest egg to leave to your heirs.
  • You want a standard of care greater than what usually comes with a government-funded facility and you’re willing to spend your nest egg on it.

Once again, there’s no right or wrong answer to this question. Planning for potential long-term care in a nursing home or similar facility is a very personal decision. If you know that you want particular things, like a guarantee of a personal room, you should probably factor long-term care into your written retirement plan.

In a scenario like the one discussed above, how would you use that extra $1,500 each month if you didn’t have a long-term care plan in place? If you know your own feelings about long-term care, you and your financial advisor can decide on the best strategy for you.

SEE ALSO: What Type of Retiree Are You?

Question 3: How Much Do You Want to Leave to Your Heirs?

Deciding how much you want to spend in retirement is really only one piece of the puzzle. You need to decide how much of your nest egg you want to leave behind as a legacy for your children, grandchildren, or favorite charity, too.

Many people don’t care how much they leave behind as long as they can meet their own goals in retirement – namely, not to outlive their money. Other people very much want to leave something behind for future generations.

If you do want to pass on your wealth, you’ll have to get strategic about the best way to do so. You may need to think about a gifting strategy, whether you need to buy additional life insurance or even a Roth conversion strategy. It all depends on what you want to accomplish.

Here’s another thing to consider: Even if you don’t particularly care about how much of your estate is left once you’re gone, you may care very much about how much of it will go to the government in the form of estate taxes. If you’ve never thought of it that way before, ask yourself how you would feel if you knew, hypothetically, that 50% of your estate would go to taxes upon your passing. Would you do anything differently right now in order to change that outcome?

Final Thoughts on Getting Clear About What You Want Out of Retirement

People have different goals for retirement, and that’s okay. The goal of an exercise like asking yourself the three questions above is to home in on what retirement means for you. Whether your overarching goal is to protect yourself, to have fun spending your hard-earned money, or to preserve what you have for your heirs, a written plan can make you feel more confident about accomplishing your goals.

At Peak Financial Freedom Group, we believe a written retirement income plan is crucial – and that you get the most out of it when you know what you really want out of your retirement. If you’re ready for a customized retirement plan you can feel confident putting in writing, schedule a consultation with us today.

 


This information is provided and intended to be used for general educational and informational purposes only and is not intended as a solicitation for you to buy or sell any financial product. This information is not mean to be relied upon as actual financial or tax advice. The ideas, thoughts, and strategies presented here are those of the Management Team and provide an insight to our views at Peak Financial Freedom Group, LLC and its affiliates. None of this information is intended to give you specific tax, investment, real estate, legal, estate, or financial advice. The planning and ideas in this data are not suitable for all individuals or situations. Consult a qualified financial professional before making any investment decision.
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Roseville, CA 95661

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All of the information presented here is provided and intended to be used for general educational and informational purposes only and is not intended as a solicitation for you to buy or sell any financial product. None of the information presented is intended to give you specific tax, investment, real estate, legal, estate, or financial advice but rather to serve as an educational platform to deliver information. The ideas, thoughts, and strategies presented here are those of the Management Team and provide an insight to our views on Peak Financial Freedom Group, LLC. Every detail in this website is subject to change without notice. Seminar, radio shows, TV productions, book releases, magazine and book promotions are sponsored, promoted and paid for by Peak Financial Freedom Group, LLC.


2nd Opinion Package available to Qualified Retirees and Soon-To-Be-Retirees may include free consultations, a free retirement income plan, risk analysis, and fee analysis. In addition, a comprehensive written retirement income plan may be provided to those who complete the entire process. Qualified Retirees and Soon-To-Be Retirees must have a minimum of $1,000,000 of investible assets such as IRA’s, 401K’s from past employers, stocks, bonds, mutual funds, bank accounts, money markets, CD’s, etc., but DOES NOT include real estate, businesses, limited partnerships, 401K/retirement plans that can’t be moved to another plan, and other illiquid type assets.


All investments involve risk, can involve the loss of principal, and unless otherwise stated, are not guaranteed. Past performance is no indication of future performance and such information cannot be relied upon regarding future potential gains. Nothing is directly or indirectly guaranteed by this information. The planning and ideas presented herein are not suitable for all individuals or situations. Hypothetical examples are used to explain concepts and are not indicative of potential results you could receive; past performance is not a guarantee of future results; and results are not indicative of any particular investment or income tax situation; your results will be different and could be lower or higher. Consult your financial professional before making any investment decision. Insurance product features and benefits, such as guaranteed lifetime income riders, are subject to contract terms, limitations, fees, and the claims paying ability of the insurance company issuing the contract. The sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity, or other asset to fund the purchase of any other asset including an annuity may have tax consequences, early withdrawal penalties, or other costs and penalties as a result of the sale or liquidation. Different assets can be complex and carry fees, costs, and surrender charges. If you place assets under management with Fiduciary Solutions
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2019(1), 2020(2), 2021(3), and 2022(4) Five Star Professional Wealth Manager Award - Dan Ahmad and Jim Files have been nominated for and have won the 2019, 2020, 2021, and 2022 Five Star Wealth Manager Awards. Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. Once awarded, wealth managers may purchase additional profile ad space or promotional products. Award does not evaluate the quality of services provided to clients. The Five Star award is not indicative of the wealth manager’s future performance. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or this publication. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by Five Star Professional in the future. Award winners represent an exclusive group of wealth managers who have demonstrated excellence in their field by satisfying 10 objective selection criteria. For additional information on the Five Star award, including a complete list of the 10 objective selection criteria and their research/selection methodology, go to https://fivestarprofessional.com.


Investment advisory services are offered through Fiduciary Solutions, LLC, a California Registered Investment Advisor. Insurance products and services are offered through PFFG Insurance Agency LLC, a licensed insurance agency (CA Insurance License #0N14013). Peak Financial Freedom Group LLC is a financial planning and umbrella marketing organization, which enables the provision of multiple financial services under one brand. Peak Financial Freedom Group LLC, PFFG Insurance Agency LLC, and Fiduciary Solutions LLC are affiliated entities with common ownership and control.


Jim Files is licensed as an investment adviser representative with Fiduciary Solutions LLC (CRD #1620449) and is a licensed insurance producer with PFFG Insurance Agency LLC (CA Insurance License #0F06511). Dan Ahmad is licensed as an investment adviser representative with Fiduciary Solutions LLC (CRD # 1491561) and is a licensed insurance producer with PFFG Insurance Agency LLC (CA Insurance License #0732913).

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