Retirement 101: Common Financial Goals, Worries, and Solutions

The good thing about retirement is that you have a lot of free time. My active audlt community helps me mkae the most of it. Every now and again, our Community Homeowner Association hires a speaker to come in and give a seminar or workshop on various subjects. Today, I attended a two-hour workshop called “Retirement 101.”

Honestly, I was afraid it was going to be one of those annuity sales jobs. You know the kind. The ones where they try and lure you in with promises of free meals if you sit through their sales pitch.

However, this speaker was great at speaking in such a way that didn’t feel like a sales pitch. Of course, he was laying out the case for using a “fee-only” financial planner, like himself. Can’t blame a guy for trying! If someone needed a financial planner, the speaker did seem to be a good choice. As with any presentation, you always get some good ideas and reminders on some things you may have forgotten. Here are a few of those.

Common Goal: Have a Financial Plan

The speaker started off with a great point. Most people don’t have a financial plan, and you really need one. Here we were, sitting in a Del Webb Community, where the average age is 70-plus. I couldn’t help but think that if someone didn’t have one by now, they probably never will! He continued by pointing out financial plan gives you “peace of mind.” Even if part of your portfolio isn’t doing well, it may serve its purpose in your overall plan. Once, I read something that made a great deal of sense to me. The reason most people fall short is that they don’t stay with their plan. They jump around, investing a little here and there. Having a financial plan and sticking with it pays off…in more ways than one.

Common Worry: Running Out of Money

The financial industry really plays into our fear that we’re going to run out of money. We want to maintain our lifestyle to the end of our lives. It’s a real fear most people have. Securing our financial well-being is important. It’s important to educate yourself about financial matters. If you’re married, keeping your spouse informed is a must. As we get older, most of us become more conservative with our investments, Personally, I’ve started allocating more to fixed income and bonds that mature when we need money. Fixed income is also less volatile. A bond ladder works for me and others, as well.

Common Solution: Reliable Stream of Income

A common goal is to create a reliable stream of income that would fulfill our needs when we need the money, with as little risk as possible. Whether it’s from stocks, bonds, REITs, annuities, Social Security, pensions, real estate, or a combination of these—it’s up to each person to decide what is best for them and their risk tolerance. A study from AARP showed that Social Security benefits provide 39% of people’s retirement income on average. As we start taking on more risk than we’re comfortable with, it becomes a source of stress. And that, my friends, is something we don’t need in our retirement years.

Sorry, but there’s no steak dinner at the end of my presentation…

Executing a financial plan can be overwhelming, but having someone on your side may help. Of course, whether you go with a Financial Advisor or do it alone, monitoring and staying on top of your investments in retirement is a time-consuming job. But it’s one job where you can’t take retirement if you want your savings to last.

*Special thanks to Brad Malia from Malia Financial Group for today’s workshop.