If you are nearing retirement, you have a lot to think about. Maybe you have put off retirement planning until now. Perhaps you have put some money away and are unsure that it will be enough. Or maybe you have saved considerable funds and want to ensure that you make the most of them after you retire. Wherever you are in your retirement planning process, the retirement services professionals at Boelman Shaw Capital Partners in Des Moines can help.
Have I saved enough?
If you are unsure whether you have saved enough for retirement, ask yourself the following questions:
What assets to I have available for retirement?
Take stock of what you currently have available to you, including any 401(k), IRA or other retirement fund, personal savings, and assets that you may choose to liquidate.
What debts, liabilities, and other demands on my cash flow can I anticipate?
In addition to your regular living expenses, consider your major debts, including mortgage, car payments, credit card debt, and other loans you may have outstanding. Also account for medical and dental expenses you can expect to incur, considering premiums and out-of-pocket costs.
What unanticipated expenses might I encounter?
It is important to remember that unexpected expenses will arise. What if your home needs a new roof, your car needs major repairs, or you experience unanticipated health problems? Is it likely that you will be supporting others, such as children or grandchildren, in your retirement as well? What if you or a family member require long-term care? Your plan should include sufficient flexibility to accommodate some of these types of costs.
What sources of cash already exist for my retirement?
What can you expect your regular income to be? Do you plan to continue working part time? Will you be drawing from a pension or annuity? What can you expect your Social Security income to be? If you are not sure, visit the Social Security Administration’s retirement estimator.
Will my income and assets cover my projected expenses?
When you have a picture of your assets and projected income and expenses, you will get a clearer idea of how sufficient (or insufficient) your retirement plan is at its current stage.
I haven't saved enough. What can I do now?
Take advantage of savings opportunities that are still available to you.
While you are still working, maximize your retirement contributions, particularly when they qualify for matching employer contributions and tax incentives. This will help you make the income you still have go farther.
Consider how to increase your retirement income.
You may want to delay retirement to give you more income-generating years to contribute to your tax-advantaged and/or employer-sponsored retirement accounts. Working part time after retiring from your full time job is another way to generate some additional cash flow, and it can make a big difference in how long your retirement funds last.
Look at how to trim your budget.
Look back at your anticipated expenses, and ask yourself how you can minimize them. Are any of them higher than they need to be? Perhaps you could drive a simpler car, live in a smaller home, or share some expenses with a friend or family member. This is also a good time to reassess you insurance needs. As the circumstances of our lives change, so do our needs for risk protection. Speak with an insurance professional about what types and levels of coverage make sense at your current stage of life.
How can I make the most of my retirement money?
Consult with a financial planner who is knowledgeable about the myriad of options available to you. The professionals Boelman Shaw Capital Partners offer complete retirement planning services. With our experience in retirement savings, tax, and insurance, we can help you understand the intricacies and comparative advantages of a number of possible retirement strategies.
Material discussed herewith is meant for general illustration and/or informational purposes only, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.