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Talk…about money

Retirement Planning? Get your finances ready.

by | May 1, 2023 | Nearing Retirement

Bill and Michelle are taking care of their financial planning for retirement

As you approach retirement age, financial planning becomes increasingly important. While everyone dreams of a comfortable and stress-free retirement, it is not a given, and requires careful planning and preparation. With that in mind, let’s explore some of the ways Dinergy’s focus on financial planning and style of investing can help you now as you prepare to retire in the next couple years.

  1. Set your retirement goals
    The first step towards effective retirement planning is to determine your retirement goals. Consider the lifestyle you want to maintain and the expenses you will incur in retirement. This will help create a budget and plan for how much money you will need to save.
  2. Evaluate your current financial situation
    Take stock of your assets and liabilities. This will help determine your net worth, which is the basis for any financial planning. Calculate your current expenses and income to identify areas where you can cut back and save more money.
  3. Plan your retirement income
    Estimate your Social Security benefits, pension benefits, and any other sources of income you may have. This will help determine how much you need to save in order to generate enough income to support your retirement lifestyle.
  4. Create a budget
    Estimate your future costs. This will help determine how much you need to save to meet your retirement goals. Make sure to account for inflation and any unexpected expenses that may arise.
  5. Maximize your retirement savings
    Contribute the maximum amount allowed to your 401(k), 403(b) or IRA. This will help you save more money over time and take advantage of tax benefits.
  6. Manage your retirement savings.
    When you retire, your retirement savings gets a new job description: support your on-going living expenses. Your money’s new job comes with a change in your financial risk profile – that is what level of risk are you willing to take to achieve market returns.  Getting this balance between risk and reward for your investments becomes more important as volatility (the ups and downs of the market) has a much more immediate impact on your income in retirement than when you were working.
  7. Consider working longer
    Increase your retirement savings and delay the start of your Social Security benefits. This can help you increase your retirement income and reduce the amount of money you need to save.
  8. Develop a retirement withdrawal strategy
    Plan how you will withdraw money from your retirement accounts. Consider factors such as tax implications and investment performance to maximize your retirement income.
  9. Create a plan for healthcare expenses
    An important element of retirement planning is estimating your future medical costs and considering options such as Medicare, long-term care insurance, and health savings accounts.

In conclusion, retirement planning for retirement in the next couple of years requires careful consideration of your goals, current financial situation, and future expenses. Creating a budget, maximizing your retirement savings, and developing a retirement withdrawal strategy can help ensure a comfortable and stress-free retirement.

Learn more about how Dinergy can help couples and individuals nearing retirement.