One of the first steps in planning for retirement is knowing what to ask. Listed below are key considerations broken down by the age-based stages of planning.....
Just starting out (Age 20 to 40)
- How much of your income should you target for savings?
- How do you maximize your tax deferred investment options?
- How should you allocate your investments?
- How do you balance savings between a home purchase and your long-term goals?
- How should you allocate savings between retirement and children’s education funding?
- How do you assess your personal tolerance for market volatility?
- How many months of expenses should be designated to an emergency fund?
- How much insurance protection should you have?
- How should you structure your Will, power of attorney, and advanced directives?
- Is your budget appropriate given your income?
- How do you establish and maintain a good credit rating?
- How exactly is your advisor compensated?
Getting there (Age 40 to 65)
- Should you roll-over former employer 401(k)’s into an IRA?
- Are you maximizing your contributions in tax deferred accounts?
- When should you consider Long-Term Care insurance?
- Are you saving enough to retire when you want?
- How do you balance your children’s education expenses with retirement funding?
- Should your investment risk be adjusted based on being above or below your goal?
- Is your estate plan in order?
- What type of debt should be paid off?
- Are your elderly parents prepared for additional care and estate planning challenges?
- How much can you expect from social security and which of the many options is right for your situation?
Enjoying retirement
- How do you generate consistent cash flow?
- Are you at risk of outliving your money?
- How do you prepare for tax and probate avoidance?
- How can you implement tax smart giving and charitable planning?
- What should you do for eldercare planning?
- How should you supplement Medicare coverage?
- How will your IRA’s Required Minimum Distribution taxes impact your income?
- Should you consider using a property value, or home equity as an income source?
- How often should you update your estate planning analysis?
- How best to help with grandchildren education savings?
- How can you establish a financial legacy and best pass money to heirs?
- How should your retirement investments change if you are well above or below your goals?
The above age-based lists are a good starting point for consideration of your financial life plan. In the coming weeks, we’ll break-down the age-based segments into separate blog posts with insights on how to address the most common questions.
