Why You Should Continue Meeting with Your Financial Planner Well into Retirement
Routine Maintenance for Your Financial Plan
Just like your home and car need regular maintenance to last a lifetime, so does your financial plan. As you enter retirement, routine checkups with your financial planner become even more crucial to ensure your financial well-being.
Three Key Reasons to Keep Your Financial Planner Close
Budgeting
Budgeting is the cornerstone of your financial plan, especially in retirement. Now that you rely on your assets for income, knowing and planning the right budget is essential. Identify your fixed expenses, plan for discretionary spending, and factor in medical costs. Don't forget to have an emergency savings plan for unexpected expenses.
Distribution Planning
Retirees often wonder where their "paycheck" will come from. The answer is from the investment assets accumulated over the years with your advisor's help. Review your distribution plan annually to match your spending needs and tax bracket. This helps identify the best assets to take distributions from, ensuring tax efficiency. It also opens opportunities for tax strategies like Roth conversions, capital gain recognition, tax loss harvesting, and charitable giving.
Legacy Planning
Discussing your legacy with your advisor is vital. Whether you want to leave assets to the next generation, charities, or other loved ones, it's important to talk about your wishes. Topics to discuss include how much to leave, providing a legacy during retirement, and fulfilling philanthropic goals.
Not having a set paycheck can be daunting, but your financial advisor is there to ensure the assets you've worked hard to accumulate provide the retirement life you desire. By continuing to meet with your financial planner, you can maintain a well-tuned financial plan that supports your needs and goals throughout your golden years.