The life expectancy in the United States continues to rise. This means planning for retirement and ensuring you have enough funds available to last you for several decades is essential. Depending on social security and other government programs is risky, and a prudent way to prepare for your retirement is to plan ahead for yourself. The following is a complete review of retirement planning and why it is important for all adults in 2020.
What Is Retirement Planning?
Retirement planning is the preparation for retirement. The primary components include financial planning and the allocation of funds to use after one leaves their profession. It also involves making non-financial decisions, such as whether or not to move homes. This type of planning typically involves saving money to help ensure an enjoyable and financially independent retirement. Of course, planning for retirement looks different for every individual, and an advisor can tailor the plan and advice to meet the client’s needs and preferences.
5 Reasons Why Retirement Planning Is Important
Retirement planning can make an enjoyable retirement easier. It involves planning for financial security, addressing financial obstacles and allowing the client to properly enjoy their retirement. The following is an overview of the most notable benefits that this organizational tactic can offer and reasons why you should consider speaking with a planning advisor.
Financial Security During Retirement
Social security, Medicare and other government aids aren’t 100% reliable. Setting aside funds specifically for retirement can offer more security during retirement. Many make the mistake of budgeting wrong for retirement and learn that they did not save enough only after it is too late. A wealth management advisor can help future retirees determine the appropriate amount to save, along with helping clients maximize current revenue through investments and assets management.
Future Financial Obstacles
Whether it’s paying family medical bills, helping a child or grandchild with college tuition or paying for another expensive and unexpected cost, financial obstacles are often hard to plan for. Retirement planning factors in the possibility of unexpected financial costs. This helps clients avoid running out of funds during retirement or being unable to help themselves or a loved one during a personal financial crisis. Wealth management advisors have experience helping retired clients through financial obstacles. They can advise clients on potential financial trouble and help them prepare through various tactics.
Not Having To Rely On Social Security Or A Pension
Social security benefits are not guaranteed by the government. In addition, there is no certainty what the status of social security will be in ten or twenty years. Some doubt whether social security will still be around in several decades or that it may be severely depleted. Pensions are perhaps more reliable, but many pension plans have loopholes and fine print that may make it less reliable. Planning considers these concerns and helps clients use their own wealth to allow for a more secure retirement.
Financial Advantages For Your Family
Retirement planning also helps family members. For those who have accumulated or saved lots of wealth throughout their career, the ultimate reward is being able to help family members. This can include helping family members pursue their endeavors through financial backing or having the time available to travel and support them. It can also include estate planning.
This organization for the future helps by properly allocating funds for retirement to ensure there is enough available to live an enjoyable retirement without relying on government funds or the assistance of family members for financial support.
Enjoying Your Retirement
The ultimate goal of retirement planning is to enjoy retirement. Retirement is a great opportunity to check off bucket list activities that you were not able to complete during your working career. Of course, this entails having the money and time available, which retirement planning helps to ensure. Also, early retirement planning can help reduce the time you have to work, and you can start your retirement without worrying about how you will afford it ten to fifteen years down the road. Regardless of your plan after you retire, the fact is being stress-free and financially independent is a huge benefit.
Speak To An Experienced Wealth Management Firm
Everyone should have the opportunity to enjoy a peaceful time after they retire from their professional career, and you can get started with retirement planning by speaking to our experienced wealth management advisors today. We are glad to answer your questions in regard to wealth management and planning.
Contact our wealth management team by calling 703.782.5058 or request a consultation online to learn more about our planning services. We want to help you plan for a comfortable and financially-free retirement.