Financial Life Planning During Retirement

Why would you need to do financial life planning after you retire from full time employment?

On the surface, it might seem way too little too late to engage with a financial life planner after retirement. The usual point of working with a financial life planner is to help you plan your investments and spending before you retire so that you will have enough to do the things you want to do upon retirement.

And yes, in fact, most of our clients engage with us in their 40s and 50s to jump start that process. We also get some clients who touch bases with us a few years before retirement to fine tune their retirement plans and get their pre-retirement finances in order.

But as you will see, there are actually many benefits a financial life planner can provide for you even after you’re retired.

Why You Should Use A Financial Life Planner In Retirement

Here are some reasons you’d want to consider a financial life planner after you retire.

Get The Most Enjoyment From Your Retirement

Retirement is a time to enjoy life and do what you’ve always wanted to do. For most folks, that means not having to worry about finances. An experienced financial life planner will do the worrying for you and make sure you remain on track. They can also keep tabs on what’s going on in the financial world so that you don’t have to. Your planner can meet with you periodically to show you how your retirement finances are doing and discuss any needed adjustments due to changes in the investment markets or changes in your own financial situation.

Even if you don’t mind managing your own personal finances during retirement, a financial life planner can be a good resource for you and serve as a “sanity check” and thinking partner to help you keep your financial picture in clear focus.

Adjust Your Retirement Course As Needed

Retirement, just like all other stages of life, will have its detours and reroutes along the way. During the course of a long retirement, adjustments will be needed to account for changes in the financial market, as well as to gradually reduce risk to your portfolio as you come to rely more on the principal balances of your investment accounts. But it won’t just be market changes that will affect you.

A fruitful and happy retirement is not just about having enough money. It also means being physically healthy, socially engaged, and having meaning in your day-to-day life. Thus, as you experience your retirement journey, you might want to make your own adjustments to accomplish these objectives.

Some adjustments will be fairly straightforward, such as determining whether you still need life insurance and whether getting supplemental health coverage or long term care insurance makes sense. Your financial life planner can help you determine how much and what you will need depending on your financial status.

On a more positive note, you might discover that one of the locales you visit during your retirement travels is a place you’d really like to call home. Or you might find that you love sailing on cruise ships or camping regularly in an RV, and decide that you want to spend an extended amount of time pursuing that lifestyle.

Making such major changes can be extremely fulfilling. But without a full time income, adjusting your retirement finances can seem like a daunting task. But it’s not an endeavor you will have to undertake alone. An experienced financial planner can help you determine the necessary changes to your retirement assets, identify any potential pitfalls, and perhaps provide some out of the box thinking to help make your course adjustment a smooth one.

Help You Help Family and Friends

For those retirees with extended families, older and younger relatives can also alter the path of your retirement. For example, after retiring you might decide that you want to travel more often to visit your children and grandchildren. Or you might choose to move closer to them, or maybe even help out with college savings for your grandchildren (after discussing it with your children of course).

For beloved elders, you might want to spend more time and money earlier in your retirement to prioritize visiting older relatives. Another common choice you might make is to move closer to elderly parents (or move them closer to you) and take a more active role in assisting with their care, whether hands on or just financially.

Getting to spend more time with loved ones is one of the greatest perks of being retired. But it can increase the rate at which you need to draw from your retirement savings.

Advanced Legacy Planning

You might find that your investments are doing better than expected. Or that you are simply not withdrawing from your retirement accounts as much as you thought you would. Of course, this can open up more things for you to do in retirement as well as improve the overall quality of your retirement lifestyle.

And as you get along further into your retirement, you might come to realize that you will have more than enough retirement savings. That would potentially mean that you could leave a portion of your retirement investments in a more growth oriented investment so that you can leave a larger amount for your heirs.

Whichever your preference (or both), your financial life planner can help you determine the optimal approach for adding items to your retirement “bucket list”. Or they can help prepare a plan to optimize the portion of your retirement savings you choose to leave as a legacy to your loved ones. The planner can also serve as an impartial but informed facilitator for family conversations regarding legacy planning.

Do The Heavy Lifting

Ultimately, while retirement is the end of your full time working career, it’s also the beginning of the golden years of your life.   The end of a steady full time income doesn’t mean that a financial life planner is no longer useful. In fact, an experienced financial life planner can do the financial heavy lifting for you. They’ll help make sure your retirement finances are in good order, adapt and adjust your financial assets as you adjust what you want to do in retirement, and help you enjoy your golden years to their fullest.