by Mike Halper 10/19/2023

The biggest mistake you can make is entering retirement without a solid financial plan. High inflation, fluctuating interest rates, and uncertain economic conditions mean you need clarity about your financial future more than ever. A financial planner helps you:

• • • Define clear retirement goals and determine how much you'll realistically need.

    • Create strategic savings and investment plans tailored specifically to your situation.

    • Continuously monitor your progress and make timely adjustments, ensuring you're on track for retirement.

Procrastinating on retirement savings reduces the power of compound growth, potentially costing you tens of thousands of dollars. Financial planners help by:

• • • Establishing a structured saving and investment approach, maximizing your returns through early and consistent contributions.

    • Identifying opportunities to catch up on savings through strategic tax-advantaged accounts if you started late.

Healthcare is one of the largest expenses in retirement, and unexpected medical or long-term care costs can significantly deplete your savings. Financial planners guide you by:

• • • Navigating the complexities of Medicare and supplemental insurance plans, preventing costly enrollment mistakes and penalties.

    • Advising on long-term care insurance solutions, locking in lower rates early and protecting your retirement nest egg from unforeseen medical expenses.

Taxes significantly impact your retirement savings. A financial planner ensures you effectively leverage:

• • • Traditional IRAs and 401(k)s to reduce current taxable income, enhancing immediate savings.

    • Roth IRAs and Roth 401(k)s, allowing tax-free withdrawals during retirement, preserving your wealth when you need it most.

Conventional wisdom advises retiring debt-free, but sometimes retaining low-interest debt (like a mortgage) while investing your funds strategically can yield better long-term results. A financial planner can:

• • • Conduct thorough analyses to determine whether paying off certain debts early or investing your money provides greater financial benefit.

    • Craft personalized debt management strategies that optimize your retirement income.

Too many pre-retirees claim Social Security too early, significantly reducing lifelong benefits. A financial planner helps you:

• • • Calculate the optimal age to begin receiving Social Security, considering your financial needs, health status, and family longevity.

    • Strategize ways to maximize benefits, often increasing your monthly income substantially by delaying claims when feasible.

While the allure of relocating is strong, failing to research how your chosen location affects your retirement finances can lead to costly surprises. Financial planners help by:

• • • Assessing potential locations based on cost-of-living, healthcare accessibility, tax implications, and overall affordability.

    • Ensuring relocation enhances your financial security and lifestyle goals rather than undermining them.

Retirement without purpose often results in overspending and dissatisfaction. A financial planner can:

• • • Help define a meaningful vision for retirement, aligning your financial strategies with your passions and priorities.

    • Establish budgets and spending strategies that focus resources on what truly enriches your retirement experience.

The information in this material is not intended as investment, tax, or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Digital assets and cryptocurrencies are highly volatile and could present an increased risk to an investors portfolio. The future of digital assets and cryptocurrencies is uncertain and highly speculative and should be considered only by investors willing and able to take on the risk and potentially endure substantial loss. Nothing in this content is to be considered advice to purchase or invest in any security, digital assets, cryptocurrencies, or any other investment. Some content may be developed from sources believed to be providing accurate information.