Retirement Review

We do not learn from experience…we learn from reflecting on experience. ~ John Dewey

Question: My husband and I retired ten years ago. How often should we review circumstances to see how we’re doing?

Answer: You are asking an essential and important question. Since you didn’t state your age, let’s assume that you were 65 when you retired and are now 75 years old. Based on this, it’s possible that you could live another 20 years. It’s common to see people in their early to mid-nineties, especially in SWFL; it must be the sunshine! A review at this point is ideal. It’s more challenging to correct your course of action later in your journey.

As you move through retirement, it’s important to both assess the quality of your life circumstances as well as performing a quantitative monetary assessment. Most people focus just on finances and health. This is an opportunity to review and think about all areas of life for the future to include family, travel, community, and other priorities well into your 80s, 90s and beyond.

In working with our clients,’ we begin by checking to see if income sources match spending needs. This is where a CERTIFIED FINANCIAL PLANNER^® Practitioner may suggest adjustments and confirm whether your current asset allocation is still appropriate.

If you’ve experienced any major life changes (such as marriages, divorces, births, or deaths) in the first phase of retirement, it may require updates to your estate planning documents and beneficiary designations. Let your team of financial professionals know about any necessary revisions sooner than later. My Dad unfortunately waited and didn’t make his updates in time, passing away with outdated and incorrect documents in place. Don’t let that happen to your loved ones.

On the qualitative side, this is the time to identify activities you’d like to enjoy without sacrificing financial stability. We can simulate how your portfolio may respond to spending changes.* When thinking about adjustments to spending levels, feel free to lean on us for advice before implementing changes to fulfill your needs, wants and wishes. This is the time to identify and express your dreams for the second half of retirement and include those aspirations in your financial plan.

Home Sweet Home

According to a study by the Bureau of Labor Statistics, retirees spend an average of 1.77 hours per day on cleaning, laundry, and housework. This varies depending on the size of the house, and the amount of outside maintenance required. It may be time to consider downsizing if you’d like to simplify your life. Or, if you host holidays and family gatherings, or have children and grandchildren who visit for extended stays, you may not want to reduce your square footage.

Ask yourself how your home is working for you. Accessibility is a consideration too. In SWFL we primarily see single story homes and condos, or when there are second or third stories, elevators are common. Theres’ a reason for this; stairs become more difficult to navigate over time. It may be the time to consider an independent or continuous care retirement community (CCRC). Companionship, help with errands and even caregiving may be things on your mind

Any Health Concerns?

My amazing doctor has been known to gently start a response to a malady with “as we get older….” and then goes on to explain health changes are natural. It’s important to think about availability and location of your doctors, and if any insurance changes may be necessary. For instance, if you know you’ll need a knee replacement soon, examine your health plan and consider what an upcoming surgery may cost. During Medicare’s annual open enrollment from October 15 to December 7, you can make any changes necessary to your insurance coverage.

Some Medicare Advantage Plans even give access to gym memberships and fitness classes. Joining a gym gives you the opportunity to commit to regular physical activity, which may prevent health problems that come with age, but it also provides socialization and a sense of community.

Time

You’re right on time to review finances and other areas of your life with your trusted team of financial professionals. Your future is about money, but it’s actually about much more than money. Make sure you’re having these conversations with your CERTIFIED FINANCIAL PLANNER^® Professional. Stay focused and plan accordingly.