Ep #3: Retirement Decisions: More Than Just Investments

Perhaps you’ve been building your nest egg for quite some time, but have you realized that retirement is about so much more than just your investments. Chris will talk us through five areas that require a bit of thought and some careful decisions to prepare you for a thriving retirement.

Full show notes: https://fortune-financial.org/ep-3-retirement-decisions-more-than-just-investments/

Key Takeaways From This Episode:

The Mailbag

0:52 Woody: Selling a home

• Woody is retiring in two years and has plans to move to the beach. With home values so high in the neighborhood, should he sell now and rent for a couple of years?
• This is a similar question to when people are trying to time the market at an all-time high and sell at just the right moment before a crash or downfall. It carries with it similar risks.
• Two years is not a long timeframe in real estate, so Chris doesn’t think it will be that big of a change in that time. Do the math to figure out what you could get the house for today as well as what the rental costs would be. Talk to a real estate professional to find out the best answer for you.

More Than Just Investments

4:15 Lifestyle

• When was the last time that your time was truly yours to dictate without a pre-set schedule dominating most of your decisions? Kindergarten? Realize that you have a gift of control over your time and think about how you want to spend it. Do you want to travel more? Pursue hobbies?
• What will it cost you to live this way?

5:59 Social Security

• When are you going to start it? For most people, the earliest age to start is 62. But that isn’t always the right time to begin. Don’t make that mistake. Don’t assume you should start Social Security as soon as you are eligible.
• Consider also when the best time us for your spouse to start Social Security.
• Consider your tax implications because your Social Security may be taxed.

8:03 Pensions

• Fewer and fewer employers are offering pensions but if you do have that then you may be presented with a few different choices.
• Should you take the monthly pension or a lump sum buyout?
• Depending on the offer, sometimes the lump sum is better, but sit with a financial advisor to weigh out the decision.
• If you are married, find out if you should take a reduced pension to get a spousal option.

10:09 Home-related issues

• Sometimes if you had kids and they are out of the house now, downsizing may free up some of your spending income.
• Do you want to stay in the area or relocate?
• If you relocate, will the cost of living be higher or lower?
• Reverse mortgage may be an option, but it depends on the situation.

12:38 Health questions

• You can’t ignore the cost of healthcare, it’s the single biggest expense that most people are going to have in retirement.
• If you are retiring before age 65 when Medicare starts, where will you get insurance from until then and can you afford the payments?
• If you or your spouse had any type of chronic illness or long-term care event, how will that be paid for?
• Be prepared ahead of time so nothing pops up that can derail your retirement.