Financial Advice Retirees Wish They Knew Before Retiring
They say that hindsight is 20/20. Nowhere is that more true than when it comes to those preparing for retirement. There are many lessons that “Future You” would like ”Present You” to know, now!
We don’t have time machines to allow us to go back and teach our past selves the advice we wish we’d have learned. But what you can do is learn from the mistakes of others.
Thankfully, in my years of helping others prepare for retirement, I have learned valuable lessons to pass along to clients and friends like you.
Top 5 Lessons to Learn Before You Retire
Gathering information from across the country, I have boiled down the top five lessons most retirees wish they would have known ahead of time. Hopefully, these tips can help you prepare for a smoother future!
Pay Down Your Debts
Focusing efforts now on paying down your current debts will help you prepare for your financial future. Consolidation of debts, monitoring interest rates, and ensuring a timely paydown will allow you to have more flexibility with your funds, once retirement rolls around.
2. Plan Ahead, and Then Plan Again
Most people think if they make a plan, they’re all set. Finances don’t typically work that way, however. The world is always changing. So while having a plan is certainly a great first step, you must be adaptable to the ups and downs the markets can take. Constantly evaluate your plans with your financial professional, and don’t be afraid to make adjustments to your original plan, as needed.
3. Healthcare Isn’t Always Affordable
Speaking of the unpredictability of the future, your (and your loved ones’) health is uncertain. While we do all that we can to keep our health at its best, there is no guarantee when it comes to your long-term health.
Costs of medications, long-term care, and expenses not covered by insurance can all add up quickly, and rapidly drain any savings you may have gathered over the years. So put safeguards into your retirement plan to accommodate rising healthcare costs.
4. Expect the Unexpected
If it isn’t clear by now, the overarching theme of the future is … well, no one knows for sure what is coming! It is hard to plan for the completely unknown, but ultimately that is what planning for your retirement really is. Again, rely on a financial professional to give you researched advice on how to plan for unexpected market forces, within your plan.
5. Don’t Go at it Alone
These hurdles may sound like planning for retirement is nearly impossible. But, it doesn’t have to be. With careful planning, an openness to change, adaptable products, and a diverse portfolio, you can help ensure you’ll have a solid financial future.
Still, even armed with the best of advice, going at it alone leads to a bumpy ride. Find a financial team that you can trust to help you along the way. Life’s “road” has many ups and downs, and it is ideal to have a team of professionals with your best interests in mind.
If You’re a Teacher Aiming to Retire …
Teachers have a unique set of challenges when it comes to retirement. From varying pensions or employer-offered benefits, to set age limits for retirement, it can become especially tough for teachers to prepare for the future.
Watch Out for Student Debt
Most educators carry college loans after earning their four-year degrees. Additionally, many teachers often continue their education throughout their careers, adding to that debt load.
And don’t forget about the debt you may take on for your children!
According to an analysis by the Brookings Institution’s Michael Hansen and Diana Quintero, nearly half of all public school teachers (48 percent) have children of their own at home. This can mean rising costs of college tuition for the next generation, weighing on tomorrow’s retirees.
Low Levels of Pay
With an average annual salary of around $65,000 for U.S. public school teachers, compared to a national average of around $50,000 for the country’s working professionals, it may seem that teachers have an advantage when it comes to saving for the future.
However, those statistics are misleading. Compare those figures to the fact that 25 percent of all teachers have second jobs. Additionally, teachers spend an average of $500 a year of their personal funds on their classrooms. Over the last 10 years, as the cost of living has increased significantly, teacher salaries have actually decreased by 4.5 percent.
As you can see - with rising costs and lowering incomes - educators work in a profession that can benefit greatly from smart financial planning.
Advice Everyone Can Use
No matter what your profession or age, there is still time to prepare for the future. If you want to be sure you are on the proper track for retirement, the best advice is to seek the professional advice of our team.
At Gretchen Rehm Financial, we can combine years of knowledge along with an array of products and services, to create the best plans for your unique, individual needs.
Schedule your appointment online here, and take your first steps to helping “Future You!”
NOTE: Past performance is no guarantee of future results. While there is no assurance that a diversified portfolio will produce better returns than an undiversified portfolio, and it does not assure against market loss, a diversified portfolio can reduce a portfolio’s volatility and potential loss.
