4 Retirement Questions to Discuss With Your Financial Professional

​Are you planning to retire in the coming year? If so, this is likely an exciting time. You’re probably busy wrapping up final projects at work and planning for fun and exciting ways to fill your time after you retire.
 
While you may have a full plate right now, this is also a good time to analyze your financial strategy and take any outstanding planning steps. Of course, you may not know what steps you need to take. Retirement can be a significant financial challenge. It can be difficult to know what risks you may face.

Are you planning to retire in the coming year? If so, this is likely an exciting time. You’re probably busy wrapping up final projects at work and planning for fun and exciting ways to fill your time after you retire.
 
While you may have a full plate right now, this is also a good time to analyze your financial strategy and take any outstanding planning steps. Of course, you may not know what steps you need to take. Retirement can be a significant financial challenge. It can be difficult to know what risks you may face.
 
A financial professional can help you analyze your needs and goals and identify any potential gaps or threats. If you’re not working with a financial professional on your retirement strategy, now may be the time to do so. Below are four important questions your professional can help you answer:

How much will I spend on health care?
Nearly all retirees rely on Medicare to some extent. However, Medicare doesn’t cover all health care costs. In fact, it covers only a portion of most costs, and some treatments and services aren’t covered at all. Fidelity estimates that the average retired couple will spend $275,000 on out-of-pocket health care expenses.1
 
A financial professional can help you develop a strategy to cover those costs. Your plan may include the use of a health savings account or a supplemental health care policy. You might also consider long-term care insurance, as Medicare usually doesn’t cover long-term care.

When should I file for Social Security benefits?
The decision on when to file for Social Security benefits is an important one because it’s permanent. Once you file, you can’t make a change. Generally, the earlier you file, the lower your benefits will be. You can file as early as age 62 or as late as age 70.

Waiting to file will result in a higher benefit amount. However, waiting isn’t right for everyone. The decision should be based on your unique needs and goals. Perhaps you can’t wait to retire and have no other source of income. Or perhaps you have multiple sources of income and can afford to wait with some shrewd planning and budgeting. Again, a financial professional can help you make an informed decision.

Should I roll over my 401(k)?
If you’re like most retirees, you’ve used an employer-sponsored 401(k) plan to accumulate retirement assets. These plans are popular with both employers and employees because of their favorable tax treatment and flexibility.
 
When you leave your employer, however, you’ll have to decide what to do with the balance. Theoretically, you could leave the funds in the 401(k) plan. However, you may find it more beneficial to roll those funds into an IRA, where you could have more allocation choices and greater control of the assets.

How will I generate income in retirement?
This may be the most important question you need to answer. Without sufficient income, you won’t be able to enjoy the kind of retirement you want for yourself. You may even be forced to go back to work.
 
Your financial professional can help you develop a retirement budget and project your income. They can also help you create and implement a strategy to overcome any funding gaps.
 
Ready to develop your retirement strategy? Let’s talk about it. Contact us today at Carstens Financial Group. We can help you analyze your needs and create a plan. Let’s connect soon and start the conversation.

 
1https://www.fidelity.com/viewpoints/retirement/retiree-health-costs-rise
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.

17379 - 2018/2/13