Retirement : TSG Financial Strategies, LLC


Congratulations! You’ve made it to retirement, a time that probably seemed so far off for a while and has finally arrived. You have worked hard for this and we hope you are able to enjoy it. Often, when people finally get to retirement, they don’t know what’s next and it can be a season that brings anxiety. Part of the reason for the anxiety is that many don’t know if they have enough money to last them and how much they can spend each year.

If you’ve entered into retirement and you find yourself thinking, “what’s next?” here are several places to start:

  1. Review your spending plan
    This is what you’ve been waiting for! Make sure you don’t end up in a stressful situation by spending too much. Give yourself the freedom to spend by reviewing your spending plan and keeping your numbers on track.
  2. Know your capacity for risk with your investments
    When the stock market goes down, how much of a decline can you stand to see? Maybe if we ask the question another way, if you knew that the decline you were seeing would not cause you to run out of money, how much of a decline could you endure without wanting to get out of the market altogether? Some level of risk is necessary to help your portfolio stay up with your spending after inflation erodes your purchasing power. It’s paramount to know how much risk you need and how much you can tolerate.
  3. Determine how to protect against longevity (the risk of living longer)
    Sound like a champagne problem? Maybe it is, or maybe it isn't depending on your perspective on this issue. For some, genetics and family history may shed some light on the possibility this may happen, but thanks to modern medicine, we are living longer (more to come on this next). A question that needs to be asked is, what if I live longer? Incorporating guaranteed income as a part of your planning may help hedge against this risk and might even help with #2 above. So… this takes us to the next topic.
  4. Create a plan in case your health deteriorates
    Every year we turn 1 year older. Getting older is not for the faint of heart! It is important to have a plan for what will help if or when your health deteriorates. Considering your options involving estate planning, personal assets, insurance options, etc. can help shed light on what threats this issue could pose to your plan.
  5. Write out your bucket list
    Retirement is exciting! You finally have the time to do the things you haven’t previously had time for. Write out a list of all the things you’ve been looking forward to doing, such as traveling, gardening or spending more time with family. Don’t let this time pass you by!
  6. Update your beneficiaries and review your estate planning
    Keep everything up-to-date and review all your documents every two or three years to ensure your information is accurate. Sometimes things change and you need to make sure that what you’ve accumulated over your lifetime goes where you want it to go. Make sure you have outlined a clear plan, executed the necessary documents to put that plan into place, rather than leaving it behind for others to decide.

If you’re not sure where or how to get started, please reach out to us here and we will help you out.