Pillars of a Happy Retirement: Finances
July 27, 2023
Did you know that the word “wealth” derives from the Middle English word wele, which means “overall well-being?”1 For retirees, money is not the end goal. However, it is a powerful tool to get you where you want to be.
The biggest fear American retirees have in retirement is outliving their money.2 In retirement, money often represents security and freedom. Not just the ability to buy nice things. Common financial goals retirees have are to be able to live comfortably, support a widowed spouse, cover unexpected expenses, become free of debt, and avoid becoming a financial burden on their loved ones. A great way to cover all these bases is to create a written financial plan with a financial advisor.
Having a thorough financial plan is necessary to cover your current financial situation. It can also help with your short- and long-term economic goals to minimize unexpected losses if the market takes a downturn while you’re enjoying your retirement.
A full financial plan should include every aspect of your finances:
- savings
- investing
- debt
- insurance
- taxes
- retirement
Your financial plan should help you better manage your income, prepare for future expenses, reduce your risk of debt, increase your chance of achieving your financial goals, and overall increase your likelihood of financial success.
A common worry in today’s financial and retirement planning is inflation. The inflation rate hit a peak of 9% in June 2022, the highest it had been in 40 years.3 With rising inflation comes rising interest rates. In times like these, it may be a good idea to revisit your financial plan and see if any adjustments need to be made to keep you on track to reaching your goals.
Meeting with a financial advisor regularly can ease the stress of having to keep track of all your own finances, especially in trying times. When nearing retirement, there is less time to recoup any market losses than there would be if you were in the midst of your career.
At Welcome Home Financial Partners, we want you to have the retirement you have been working hard to achieve. Contact us today to schedule your complimentary consultation. We look forward to helping you!