For most of your working life, you’ve likely been focused on one primary goal: achieving financial security. You’ve worked hard, saved diligently, and minimized debt, all to secure a retirement that will be comfortable and worry-free. Now, you might wonder: What comes next? What happens when simply “surviving” retirement is no longer the goal, and you’re ready to focus on thriving?
Let’s explore five essential questions that can help enhance your financial planning so you can enjoy your retirement to its fullest.
How Have Your Goals & Dreams Changed?
As you approach retirement, it’s the perfect time to reflect on and expand your vision for the future. When you first started saving, your retirement plan may have primarily focused on ensuring financial security to cover living expenses. But now that you’ve reached financial stability and can live comfortably, it’s time to think bigger.
What passions or dreams have you put off while focusing on financial security? Perhaps you’ve always wanted to travel more extensively, purchase a vacation home, or invest in new hobbies. Maybe you’re considering giving back, whether by supporting a charitable organization or helping fund your grandchildren’s education. With a solid foundation already in place, you can align your wealth with your passions and pursue those larger dreams that enrich your retirement experience.
Are There New Investments You Should Consider?
You’re set up for a secure retirement, but to fund those new dreams and aspirations, it may be worth exploring new and more advanced investment options. You may also wonder how you can boost your investment and savings accounts, especially if you’ve already maxed out your 401(k) and individual retirement account (IRA).
Some options include opening a taxable investment account. These accounts don’t have the contribution limits of traditional retirement accounts, allowing you to continue growing your wealth even if you’ve maxed out your retirement contributions. While you won’t get tax-deferred or tax-free growth, there are no required holding periods, and you don’t need to wait until full retirement age to begin withdrawing.
Additionally, you can explore after-tax contributions to your employer-sponsored retirement plan if available. These contributions allow you to boost your savings beyond the standard pre-tax limits and can be a strategic way to bolster your retirement nest egg.
How Can You Invest in Your Well-Being?
Thriving in retirement requires more than a secure financial footing. It’s essential to invest in your health and well-being, too. As you approach this new phase of life, are you prioritizing your physical and mental health in ways that support a long and fulfilling retirement?
Building a balanced wellness routine that includes regular exercise, proper nutrition, and routine medical care is essential to maintaining an active and vibrant lifestyle. This is also a time to embrace activities that nurture your mental and emotional well-being, such as exploring new hobbies, engaging in creative outlets, or pursuing lifelong learning.
An important consideration as you near retirement is Medicare planning. Medicare will play a crucial role in your healthcare coverage, but navigating its various components can be complex. Understanding what is covered, potential out-of-pocket costs, and the benefits of supplemental insurance options like Medigap or Medicare Advantage plans is key to managing your healthcare in retirement.
Should You Strengthen Your Legacy Planning?
As you approach retirement, it’s also a good time to consider the legacy you want to leave behind. Have you updated your estate plan to reflect your current goals and ensure your loved ones are cared for?
Working with an estate attorney or a financial planner who can offer estate guidance can help ensure that your will, trusts, and healthcare directives are up to date and that your assets will be distributed according to your wishes. It’s also wise to re-evaluate your insurance policies to ensure they align with your goals. Whether you’re focused on providing for your family or supporting charitable causes, legacy planning is critical to preparing for retirement.
Are You Waiting to Enjoy Life?
With this exciting new chapter on the horizon, ask yourself: What’s stopping you from enjoying life right now? While long-term planning remains important, living in the present is just as crucial. What experiences or activities have you been postponing? Now is the perfect moment to start pursuing those long-held dreams, whether it’s embarking on that dream vacation, spending more quality time with family, or diving into hobbies you’ve always wanted to explore.
Live the Retirement You Imagined
If you’re ready to move beyond survival mode and truly thrive, Ironwood Wealth Management is here to help. Whether you need guidance on optimizing your sources of retirement income, planning for your healthcare expenses, or creating a lasting legacy, our team of experts can help you make informed financial planning decisions to ensure your retirement is everything you’ve imagined.
