top of page

Retirement Planning Tips To Retire Once


It is important to review basics areas of retirement planning to prepare to retire on time and once. Reviewing financial planning subjects such as health insurance, budgeting, retirement savings, estate planning are just a few areas to review with your Financial Advisor.

 Take an inventory of your assets that can be used for retirement income. To retire with the same standard of living, you will need 70-80% of your pre-retirement income. People earning less than $50,000 per year will need 95%, more than $120,000 per year, 70% rate. Poor health individuals will need 95% income replacement in retirement. Source: Fidelity Investments 2013.

 How much should you have saved for retirement at every age? By age 40 3X annual salary, by age 50 6X annual salary, by age 60 8X annual salary, by age 67 10X annual salary according to Fidelity 401k services 2018. Maximize contributions to your company retirement plan. Money grows tax free, contributions lower income taxes, and company may make matching contributions. In addition, invest in your own IRA when 50 and older.

 Live within your means. That means do not overextend yourself by borrowing and using credit. Consumer debt (credit cards, auto loans/lease, personal/student loans, revolving credit), should not be more that 20% of net take-home pay. Your mortgage or rent should not be more than 28% of your gross monthly income.

 Establish an emergency fund that can pay for two years’ worth of expenses and factor in 4% inflation per year. Two years should get you through a bear market without having to sell your investments while they are down or even worse your home.

 Protect your nest egg. Healthcare expenses greatest threat to retirement assets. Get adequate health insurance: Supplemental Healthcare policy, Long Term Care. Apply for Medicare when you turn age 65. For a couple retiring at age 65, the average out-of-pocket healthcare cost in retirement is close to $380,000! Healthcare cost increase 25% during first decade after age 65. Source: Healthview Services 2019.

 Get adequate Property & Casualty, get an umbrella policy if needed.

 Review estate/legacy planning: review Wills, Health Care Proxy, Durable Power of Attorney, Beneficiary information, Asset Titling, Establish applicable Trust(s) such as a By-Pass Trust, etc.

 Reduce or eliminate debt. Pay off high interest debt – consolidate debt under a loan that has deductible interest. Long term debt, like mortgage, should not be more than 40% of total assets.

 Review Social Security Benefit statement and determine optimum time to begin taking benefits. Know when to apply for Social Security benefits and Medicare. The longer you wait the greater the benefit, however you will also receive it for less time. Therefore, plan for what works best for your circumstances. We can help you.

 Consolidate all retirement accounts with one advisor and one brokerage/custodian so that supervision of assets is easier and better. Our motto is “Get help, get control, and get results”.

 Determine your distribution options from pension plans and retirement plans. The right decision can save big on taxes and maximize your retirement income. Seriously consider taking control of your money while you can by transferring your retirement assets to your own IRA. Evaluate the pros and cons of rolling company retirement plan into your own IRA Rollover account. An IRA Rollover held a Charles Schwab and managed by Aspetuck Financial Management has greater investment options, the flexibility to change your investment management strategy, and allows continual access to your principal in case you need more money than a monthly pension.

 Conduct an expense inventory used to create a budget. Compare it to your projected retirement income. Aspetuck Financial can provide report that calculates your estimated monthly retirement income.

 We can help you decide on whether to withdraw from qualified accounts of non-qualified accounts first in retirement.

 Devise an investment strategy that provides lifetime income and covers essential expenses. Being too risk averse may result in running out of money, or lower standard of living if your pension, social security, and other income generating assets are not sufficient. Aspetuck Financial Management can help you select a suitable portfolio for you and your circumstances.
bottom of page