October is Financial Planning Month! Here are some important questions to ask or revisit with your advisor:
At what age should I retire?
Ensuring that you will have saved enough money throughout your career to support your lifestyle during retirement is key to determining the right retirement age for you.
What coverage do I need outside of Medicare?
You do not want to wait until you need care to buy coverage, as pre-existing conditions may disqualify you. Among people 65 years of age, nearly 70% will need long-term care (LTC), making LTC insurance no longer a luxury, but a necessity.1
What can I expect my monthly Social Security income to be and when should I claim benefits?
Visit ssa.gov to create your personal “my Social Security“ account to estimate your future monthly Social Security benefits. Your financial advisor can help you incorporate Social Security and the ideal time to claim benefits into your retirement strategy. Be sure to factor in your spouse’s benefits as well.
Am I saving enough? How much can I spend during retirement?
Regular planning meetings with your advisor will help you plan necessary steps today to accommodate your desired lifestyle in retirement. Your financial advisor can also help you determine how to create a monthly spending plan for retirement. Consider your needs, wants and wishes. These include basic living expenses and health care, as well as discretionary spending – after all, it’s important to set aside resources to have fun in retirement!
Where will my income come from during retirement?
Consider not only your Social Security benefits, but your retirement savings accounts. Your financial advisor can offer you guidance to determine your appropriate risk level, maintain a well-balanced portfolio and stay on track to be financially stable in retirement.
Staying Prepared
The process of estate planning is necessary to ensure your assets and your loved ones are cared for in the event of your incapacitation or death. The best way to take care of who and what you hold dear is to start planning early. Designating who will receive your assets and handle your affairs should be done in a way that aims to minimize taxes such as estate tax, gift tax, income tax, and others. The plan you create today should be revisited periodically so that it can be amended as your financial situation changes.
Hitting the Open Road
For many of us, travel is finally feeling a bit more doable again. Here are some ideas to kick start your fall travel plans from where to go to how to save going there.
Top 5 small cities to visit:2
1. Aspen, Colorado
2. Charleston, South Carolina
3. Alexandria, Virginia
4. Santa Fe, New Mexico
5. Greenville, South Carolina
On the Road
The simplest way to begin is to decide on the total budget for your road trip, then divide that amount by the number of days your trip will last, in order to arrive at your daily allocation. Making a budget for each day is an easier method to break down what may be an otherwise daunting task.3
In the Air
Many major airlines have waived or reduced fees for changes or cancellation of travel to accommodate the ever-changing landscape created by the global pandemic. Check your provider’s policies before booking to see what recent changes have taken effect.4
