Retirement Questions That Have Nothing to Do With Money

Preparing for retirement is not entirely financial. Your degree of happiness in your “second act” may depend on some factors that don’t come with an obvious price tag. Here are some non-monetary factors to consider as you prepare for your retirement.

What will you do with your time? Too many people retire without any idea of what their retirement will look like. They leave work, and they cannot figure out what to do with themselves, so they grow restless. It’s important to identify what you want your retirement to look like and what you see yourself doing. Maybe you love your career and can’t imagine not working during your retirement. There’s no hard and fast rule to your dream retirement, so it’s important to be honest with yourself. A recent Employee Benefit Research Institute Retirement Confidence Survey shows that 73% of workers expect to work for pay in retirement, whereas just 23% of retirees report that they’ve actually worked for pay.¹

Having a clear vision for your retirement may help you align your financial goals. It’s important to remember that your vision for retirement may change—like deciding you don’t want to continue working after all.

Where will you live? This is another factor in retirement happiness. If you can surround yourself with family members and friends whose company you enjoy, in a community where you can maintain old friendships and meet new people with similar interests or life experiences, that may be a plus. If all this can occur in a walkable community with good mass transit and senior services, all the better.

How are you preparing to get around in your eighties and nineties? The actuaries at Social Security project that the average life expectancy for men turning 67 is 84.6 years old, and the life expectancy for women turning 67 is 87.1 years. Some will live longer. Say you find yourself in that group. What kind of car would you want to drive at 85 or 90? At what age would you cease driving? Lastly, if you do stop driving, who would you count on to help you go where you want to go and get out in the world?²

How will you keep up your home? At 45, you can tackle that bathroom remodel or backyard upgrade yourself. At 75, you will probably outsource projects of that sort, whether or not you stay in your current home. You may want to move out of a single-family home and into a townhome or condo for retirement. Regardless of the size of your retirement residence, you should expect to fund minor or major repairs, and you may need to find reliable and affordable sources for gardening or landscaping.

These are the non-financial retirement questions that no pre-retiree should dismiss. Think about them as you prepare and invest for the future.

1. EBRI.org, 2023
2. SSA.gov, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Five Tough Questions to Ask Before Retirement

Retirement is a significant life milestone, but achieving a successful and fulfilling transition requires answering some tough questions. Whether you’re nearing retirement or just beginning to plan, these critical considerations can help ensure your financial security and peace of mind in this next chapter. 

Do I Have Enough Money?

This is often the first question people ask, and for good reason. The ability of your savings to support your desired lifestyle is fundamental. But it’s not just about crunching numbers; it’s about believing in your plan and being mentally ready for the transition. Partnering with a financial advisor can provide valuable reassurance and ensure your plan is realistic. 

To begin to answer this question, evaluate your retirement income sources, including Social Security, pensions and personal savings. Don’t forget to plan for healthcare costs—insurance premiums, out-of-pocket expenses, and potential long-term care needs can significantly impact your budget. Additionally, account for inflation by building a buffer into your plan to preserve your purchasing power as prices rise. 

Where Will I Live? 

Where you choose to live can significantly affect your retirement experience and budget. Some retirees prefer to stay in their current homes, while others opt to downsize, relocate for better weather or scenery or move closer to family. 

Consider whether your current home is suitable for aging in place. Think about maintenance, accessibility and potential mobility challenges like stairs and exterior walkways. If you’re considering relocating, research the cost of living and tax implications in different areas. Prioritize locations with access to essential services such as healthcare, recreational activities, and social networks. 

How Do I Start Accessing My Money?

Most people are well-versed in saving for retirement but less confident about withdrawing from their nest eggs. The idea of tapping into a fixed amount of savings can be intimidating, but preparation can ease this process. 

Creating a withdrawal strategy that balances income needs with tax efficiency is key. Learn the logistics of initiating withdrawals, rollovers, and managing tax withholding. Familiarize yourself with required minimum distributions (RMDs) to avoid penalties.

Additionally, consider whether annuities might provide the stability you need to complement other income sources. 

What Does Retirement Life Look Like?

Retirement is more than a financial milestone; it’s a new chapter that requires careful thought about how you’ll spend your time. Beyond finances, envision what your “life 2.0” will look like. Will you travel, work part-time, volunteer, or take up new hobbies? 

Having a plan for your days with no commute times, set schedules or places to be can help reduce stress and provide a sense of purpose. Explore new hobbies, stay socially engaged and incorporate physical activity into your routine to enhance your quality of life. 

What About Taxes?

Taxes don’t disappear in retirement. Managing them efficiently is crucial to sustaining your income. Generating sustainable, tax-efficient retirement income can be complex but highly rewarding with the right strategies in place. 

Understand which accounts to draw from first, how much to withdraw, and how to minimize taxes. Allocate investments strategically across taxable, tax-deferred, and tax-advantaged accounts to reduce liabilities. Assess whether converting traditional IRAs to Roth IRAs aligns with your goals and stay informed about potential changes to tax laws by consulting with financial and tax professionals. 

Take the Next Step

These five questions form the foundation of a secure and fulfilling retirement. Addressing them early and thoroughly will give you the confidence to transition into this new phase of life with clarity and purpose. Consult with trusted financial and tax professionals to create a plan tailored to your unique needs. Retirement can be the most rewarding chapter of your life, but it starts with asking the right questions today. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. 

Caring for Aging Parents

Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 65 is growing. In the past decade, the population of Americans aged 65 and older has grown 38% and is expected to reach 82 million in 2050. As our nation ages, many Americans are turning their attention to caring for aging parents^.1,2

For many people, one of the most difficult conversations to have involves talking with an aging parent about extended medical care. The shifting of roles can be challenging, and emotions often prevent important information from being exchanged and critical decisions from being made.

When talking to a parent about future care, it’s best to have a strategy for structuring the conversation. Here are some key concepts to consider.

Cover the Basics

Knowing ahead of time what information you need to find out may help keep the conversation on track. Here is a checklist that can be a good starting point:

• Primary physician
• Specialists
• Medications and supplements
• Allergies to medication

It is also important to know the location of medical and estate management paperwork, including:³

• Medicare card
• Insurance information
• Durable power of attorney for healthcare
• Will, living will, trusts, and other documents

Be Thorough

Remember that if you can collect all the critical information, you may be able to save your family time and avoid future emotional discussions. While checklists and scripts may help prepare you, remember that this conversation could signal a major change in your parent’s life. The transition from provider to dependent can be difficult for any parent and has the potential to unearth old issues. Be prepared for emotions and the unexpected. Be kind, but do your best to get all the information you need.

Keep the Lines of Communication Open

This conversation is probably not the only one you will have with your parent about their future healthcare needs. It may be the beginning of an ongoing dialogue. Consider involving other siblings in the discussions. Often one sibling takes a lead role when caring for parents, but all family members should be honest about their feelings, situations, and needs.

Don’t Procrastinate

The earlier you begin to communicate about important issues, the more likely you will be to have all the information you need when a crisis arises. How will you know when a parent needs your help? Look for indicators like fluctuations in weight, failure to take medication, new health concerns, and diminished social interaction. These can all be warning signs that additional care may soon become necessary. Don’t avoid the topic of care just because you are uncomfortable. Chances are that waiting will only make you more so.

Remember, whatever your relationship with your parent has been, this new phase of life will present challenges for both parties. By treating your parent with love and respect—and taking the necessary steps toward open communication—you will be able to provide the help needed during this new phase of life.

1. WashingtonPost.com, February 14, 2023
   2. PRB.org, January 9, 2024
   3. Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

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