Why They Are So Important For Retiring Successfully
Retirement is considered something that most people don’t start thinking about until they hit the age of about 45.
Retiring is a huge milestone that, while becoming elusive for younger generations, signals the end of all those years at the grindstone. Giving up work is more than just having more free time to play golf, though! There are specific financial implications that need to be considered, and this is why it is always advised for those who are about to retire (in the next 5-10 years) to seek out the advice of a wealth management specialist.
Here are five reasons why this is worth doing.
In-Depth Financial Planning
Every wealth management agency will look at your unique circumstances and explore a financial plan to meet your needs and goals.
Every retirement is different, and yours will require careful planning, which will look at things like any income streams you have, your expenses, healthcare costs, and, of course, inflation!
If you don’t have a clear financial plan in place, there is the risk of outliving all of your savings and not being prepared to pay for unexpected costs should they occur. Seeking the advice of a wealth management specialist reduces the likelihood of this pitfall, and helps you plan more successfully.
Investment Strategy/ Risk Management
Do you have any investments?
A lot of people who are approaching retirement and don’t have a lot of pennies in the bank are likely to look into investing. A wealth management planner will be able to help you make the best decisions with this and will assess your risk tolerance, while also adjusting for the time you have to reach your goals.
They will also help assess these investments against market volatility. This strategy can ensure a more stable, passive income, helping to protect you in your golden years.
Tax!
As hard as it is to swallow, retirement savings can and will be taxed if they are not properly managed,
A wealth management team will help to identify the most effective tax-efficient options for you, which may include looking into tax-advantaged investments, and making the most of withdrawals from retirement accounts into 401(k) or HAS, health savings accounts. This will prevent tax liabilities and maximize your income.
Healthcare and Long-Term Care
Another expense that can drain retirement incomes is the one associated with long-term care or health-related costs.
A wealth management team will be able to help you navigate these challenge by looking at any anticipated costs based on your health, and working these in to your financial plan. They may also recommend options such as long-term care insurance, which will help prevent long-term financial strain.
Legacy and Estate Planning
Last but not least, many people, want to leave a legacy, either to their loved ones or to help a charitable cause.
A wealth management agency will help you look into estate planning and investments to increase the money you leave to your loved ones. They can also assist with managing beneficiary payments, and even with the writing of legally binding wills. This will all avoid legal issues when you pass, and will keep those pesky inheritance taxes at bay!
