Retirement (65+)

Living in retirement should feel comfortable, like wearing your favorite shoes. The goal is to have enough money to do the things you enjoy, whether that’s traveling, hobbies, or spending time with family. Most successful retirees spend about 70-80% of what they spent while working, adjusting their activities and expenses to match their new lifestyle.

Think of legacy planning like writing the final chapters of your life story. This means deciding how you want to help your family, support causes you care about, or make a difference in your community. Many retirees find joy in helping grandchildren with college or supporting charities while they can see the impact of their giving.

Taking money from your retirement accounts is like using water from a tank that needs to last through a long drought. You want to withdraw money in ways that keep your taxes low and your savings lasting longer. A common strategy is to take about 4% of your savings each year, while keeping an eye on which accounts (like Traditional IRAs or Roth IRAs) are best to use for different expenses.

Needs Healthcare in retirement is like maintaining an older house – it needs regular attention and sometimes costly repairs. Medicare helps with many costs, but you need to choose the right plans and understand what they cover. Smart retirees keep money set aside specifically for healthcare costs and stay on top of their preventive care.

Think of your estate plan as instructions for a complex project that others will need to finish. Having everything organized and clearly explained makes things much easier for your family. This includes keeping important documents where they can be found and making sure the right people know what to do when needed.

Making your savings last through retirement is like stretching food supplies through a long winter. You can’t control exactly how long you’ll need the money, but you can be careful about how much you use. The big worry for most retirees is running out of money, so they often spend less in early retirement years just to be safe.

Healthcare costs can grow like weeds in a garden, needing constant attention. Even with Medicare, a retired couple might spend $1,000 or more each month on healthcare premiums, medications, and other medical costs. The key is having a separate fund just for healthcare and understanding exactly what your insurance covers.

After age 72, the government requires you to take some money out of most retirement accounts each year, like being forced to eat some of your savings. These required withdrawals can push you into higher tax brackets if you’re not careful, so you need to plan ahead for how to handle them.

The stock market’s ups and downs can feel like a roller coaster ride that affects your monthly income. When the market drops, you might need to adjust your spending or use money from different accounts. Having some savings in safer investments helps you worry less about market changes.

Keeping your legacy intact is like protecting a garden you’ve tended for years. Inflation, unexpected expenses, and market changes can all eat away at what you hope to leave behind. Many retirees work with financial advisors to balance their own needs with their desire to leave money to family or charity.