Retirement is a time of life we think of for finally sitting back, relaxing, and enjoying the rewards of our hard work through the years. However, what happens if you run out of money at that point? Planning ahead, financially and otherwise, for retirement before reaching your golden years may be more vital than ever today.  

It may seem daunting, but with careful planning and foresight, you can take proactive steps toward safeguarding yourself from economic upheaval later in life. This post explores strategies to consider as you strategize.  

 Let’s explore the following:  

 ● The difference: Running low vs. running out 

 ● What is realistic retirement income planning?

 ● Creating a financial plan addressing the what-ifs 

 ● Addressing post-retirement healthcare needs

The Difference: Running Low vs. Running Out

When you’re concerned about having funds allocated for your needs, retirement planning requires extreme care and consideration. Let’s start with the basics: Running low on money is entirely different from running out of money. That’s because it involves a lesser degree of financial emergency.  

When someone runs low on money, one often still has the option to plan ahead. For instance, you might make modifications to your budget and investments. In a worst-case scenario, you could even consider downsizing your lifestyle.  

On the other hand, the complete depletion of your savings and assets is a more serious situation. Under those circumstances, a retiree may be forced to rely excessively on family, friends, or social assistance programs. To avoid this, we keep track of your retirement funds throughout your working life, helping ensure a comfortable, low-stress transition when the time comes.

What Is Realistic Retirement Income Planning?

Retirement income planning is an important part of most people’s long-term financial success. The goal is to ensure that you have enough resources to maintain your desired lifestyle without running out of money once you’ve chosen to leave the workforce. This involves both assessing your current financial situation and evaluating the plans you have in place.  

As your Personal CFO, I am honored to customize wealth management strategies to your unique needs, values, and goals. Employing asset allocation tactics, performing analysis of retirement income streams (such as pensions or annuities), and putting a long-term care plan together to cover expenses frequently associated with growing older. These are just some of the strategies that will help us help you pursue an amazing life of significance.  

In the meantime, having an emergency fund set aside may provide peace of mind, should any unexpected costs arise: It’s prudent when interest rates and the cost of living are rising, as well. Through careful budgeting and investing regularly, it is possible to plan for retirement in a way that helps ensure long-term stability. 

Taking the time to examine your finances regularly and determine how much you need for retirement expenses is the essence of realistically planning for your retirement. With careful strategies, it is still very possible to look forward to maintaining your desired lifestyle when your golden years arrive.

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Creating a Financial Plan Addressing the What-ifs

There is no such thing as a financial planning emergency. Many emergencies arise from a lack of financial planning. Uncertainty is sometimes a constant factor in life, and. Things like the economy, job security, market uncertainty, and inflation all need to be taken into consideration when creating or updating your financial plan. A possible recession makes it more important than ever to create a holistic and sustainable approach for continuing to increase and protect your wealth over time.  

Additionally, we have to take into account the different what-if scenarios that sometimes arise. Unfortunately, people fall ill suddenly, experience a car accident, or find themselves in the crosshairs of a lawsuit every day and it is vital to do all we can to guard against your assets being unjustly taken away from you. That’s why we plan, proactively, to anticipate these things before they happen.  

This typically involves three phases:  

1. The first step is establishing your goals: What do you want to achieve with your money? Are you saving up for retirement or college tuition? Maybe you want to purchase a home or start a business. Even if it’s on a napkin during lunch, it’s important to take an inventory of your objectives and write them down. 

2. Next, we will perform a stress test by analyzing your current situation, both financially and personally: How much money do you have right now? What assets do you own (and how are they balanced)? What debts, if any, do you owe? It’s also important to consider any changes happening in your life such as a marriage, birth, job change, and so on. 

3. Once you have established your goals and analyzed your current situation, it’s time to develop strategies for achieving all that is most important to you.  We typically evaluate the options you have available, such as stocks, bonds,  mutual funds, real estate investments, and so on.

A side benefit of doing this is that it often involves creating an emergency fund, as well. Setting some money aside to cover unanticipated costs early can prevent having to dip into other investments or savings accounts, should the unthinkable occur.  

A well-thought-out financial plan can help provide the security you need in case of any unforeseen circumstances. This is generally preferable to going through life dreading those what-if scenarios, knowing that you may not be prepared for them.

Addressing Post-Retirement Health Care Needs

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As people move into their retirement years, it becomes vital to consider the inflation-adjusted cost of healthcare in the future. Meeting post-retirement health care expenses can be a challenge, even if inflation weren’t lowering the value of the dollar. The costs of medical treatment and prescription medications keep rising over time – with inflation rates directly impacting both. That’s what makes it so important to create (and at times, adjust) financial strategies to account for these associated costs. Planning toward securing wealth and growing your nest egg shouldn’t be painful. Contact Silberman Wealth Strategies to learn more.

All investing involves risk, including the possible loss of principal. There is no assurance  that any investment strategy will be successful. For a comprehensive review of your personal situation, always consult your legal advisor. Neither Cetera Advisor Networks LLC,  nor any of its representatives may give legal advice. 

Mitch Silberman is a Registered Principal of and securities and advisory services offered  through Cetera Advisor Networks LLC (doing insurance business in CA as CFGAN Insurance  Agency LLC – CA Insurance License #0644976), member FINRA/SIPC, a broker/dealer and  Registered Investment Advisor. Advisory services also offered through Silberman Wealth  Strategies, Inc.

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Mitch Silberman

More about the author: Mitch Silberman

With over 30 years of experience, using his investment expertise and analytic skills, Mitch has helped his clients pursue their dreams with confidence and financial security. He is the President and Founder of Silberman Wealth Strategies, Inc., which is a fee-based Registered Investment Advisor.