Five Important Conversations About Retirement

My Comments: There’s a lot of stress in the news these days and all of you are exposed to it. I’d like to think some of it will be at least temporarily resolved by November when the mid-term elections are behind us. But my focus professionally is about money and how to manage it and not go broke if you still have time to enjoy life on our fair planet.

The following came to me from Don Graves who expressed how he had spent the much of the last July 4th weekend with family members ranging in age from 80 to their mid 20’s. He allowed as how a lot of wisdom appeared, and that most of their concerns was about money. Here are a few snippets he heard:

  • Will gas ever go back to $2.65 a gallon? Many goods and services have increased in cost over the last 30 months. For retirees, this increase erodes their savings and purchasing power and puts incredible pressure on their retirement income.
  • I’ve lost more than $200,000 in my 401k | Market volatility, correction and perhaps even a coming recession are taking a toll on many portfolios. This hits especially hard when you are 5 years prior or 5 years after retirement.
  • I wish I could hurry up and get rid of these house payments | The majority of people entering retirement have a mortgage, home equity loan or line of credit. In light of the uncertainty in front of us, being free from a mandatory house payment is a very solid retirement enhancement plan.
  • What happens if I get sick? We had a family member that had a massive stroke. She has recovered as well as could be expected, but the question is what happens if one of us gets sick? How much will it cost, how will we pay for it etc.
  • It’s good to have family | As important as money is, having a social support structure is equally as important. All of us need socialization, celebration, relationship, care and comfort. This becomes more important after retirement.

All these questions fall into one of the following categories, all of which need exploring as the idea of retirement becomes a significant reality for most of us.

Longevity – Will I have enough savings to meet my basic living expenses?

Liquidity – Will I have access to tax advantaged money when I need it?

Lifestyle – Will I have enough money to enjoy retirement on my terms?

Legacy – How I and my money will be remembered?

Long Term Care – Am I financially prepared for the costs of health-related expenses?

Don is an acknowledged expert when it comes to reverse mortgages, a highly useful and legitimate strategic and tactical way to find additional financial freedom in retirement.