Other Retirement Facts:
As we approach Father’s Day, we’re thinking about dear old Dad. Maybe he was your hero or maybe you never really knew the real him. One thing’s for sure, your retirement is certainly going to be different than his.
Back in the day, retirement was hardly a concept. Social Security was something you were lucky to get before you died. Then later on, retirement became all about spending every day like a Saturday. Nowadays, people are choosing to work past retirement age if they want. Retirement doesn’t have to start at a certain age or look a particular way. It’s more about setting yourself up financially to live and work how you want to in retirement.
In your working years, you’re in a very structured day. When you’re retired, if every day is a Saturday, that might seem great but then lose its luster. You might miss work. Or, being retired in the modern era might be more expensive than when you’re working.
Inflation aside, don’t assume you’ll spend less in retirement than when you’re working. That might be the case, or you might be spending more money now that you have the time to do what you like to do. If you like to travel or golf or shop, that all adds up. What do you want to do and what does your retirement look like? Don’t forget about healthcare costs or even perhaps kids at home or taking care of elderly parents.
How long will you live in retirement? Make sure you plan for longevity. You don’t want to run out of money, and leaving money behind for your loved ones is nice. We’re living longer and are more active overall. Remember that retirement planning isn’t a “set it and forget it.” You want to check in every year to modify as needed.
We wrap up this episode with a question from the mailbag. Kate has some stock in Apple and needs to decide: capture the gains or keep the taxes low? No one likes taxes, but don’t let that be the sole decision on whether you buy or sell. Phil talks through some of the pros and cons to selling it now.
Listen to the entire episode or click on the timestamps below to skip ahead.
[0:17] – Let’s talk about Dad.
[2:05] – Retirement is different these days.
[7:06] – Retirement might be more expensive than expected.
[9:04] – There is a lot to plan for in retirement.
[12:50] – You’ve got to fund for longevity.
[16:02] – We’re living longer and are more active.
[17:15] – Mailbag: Capture the gains or keep taxes low?
A Quotable Moment:
“Let’s walk down that road every single year: where are we at? How are things changing? Do we need to modify investments and spending and all of the different components as you go down that plan?”
-Phil Putney
