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Four Phases of Retirement
- 1. Y yo co re a st yo m en 20 fi su da gr w re Tim Toda mean expe matu less drea socia Soci any sole sort will can recen cove spou how diffe Even colle high 70 to Years ago, ou mention oncept etirement, vi long and tretch of tim our career c mind. Most nvisioned h 0-30 year tim illed with a uch as trave ays of relax randchildren was usually etirement. es have certa ay the conce ning. The ensive and th ure years are financially ams, retirees al security a ial security, retirement p source of re of comforta need quite a provide. Th ntly stated t ered by soci uses who wever, the am erent depend n though in ect Social Se her benefit o o start. Altho when ned the of isions of relaxing me after came to people having a me span activities eling to exo xation and re n. The possi the only ainly change ept of retirem cost of liv hose who w e finding tha feasible. In are finding nd a savings which is ty plan, was n etirement for able retireme a bit more th he Social S that 96% of al security, are also e mount you ding on wh n most circ ecurity until offered to th ough social s S Co Michael L. otic location ecreation an ibility of lon concerning ed! ment has tak ving has be would like to at it is becom n order to r that simply s account is n ypically a co ever intende r anybody. T ent income, p han what so Security Ad f American (including n eligible for are eligible en you star cumstances age 62, ther hose who wa security shou chwar omprehensive . Schwartz, R The F ns, leisurely nd time with ng-term care g issue in ken on a new ecome very o enjoy their ming less and realize their living off of not enough. omponent of ed to be the To reach any people today cial security dministration workers are non-working payments) for can be rt to collect. you cannot re is an even ait until age uld be a part rtz Fin e Wealth Ma RFC® , CWS® , Four Pha y h e n w y r d r f f e y y y n e g ) e . t n e t of you article, most o income Some p intent o when p from t conside The How reti Wh do Wh del Wh hav The and You reti These retirees approa a well- for ma include death, one of obstacl intentio themse having anticip nancia anagement & CFS ases of R ur retiremen we want to often not he e needs. people have of being abl putting toget these saving eration many e impact of i w much you irement plan hat required you need to hat financial ay your retir hat mortgage ve outstandin e total amou d saved for r ur health a irement. are just a s need to aching and pr -executed, lo any people ed unexpect a divorce, a a number of les that chan ons. As a r elves in the g saved less ated and s al Serv & Retiremen Retireme nt planning, point out th elp satisfy s e saved their le to enjoy ther a plan f gs, they now y factors, inc inflation. u can afford n each year. d minimum take from y l benefits y rement. es, large deb ng. unt of wealt retirement. and long-ter few of the consider. A reparing for ong-term pl is that thei ted situation an unfortun f unpredictab nged or alte result, man twilight of s for their scrambling vices t Planning ent for purpose hat social sec someone’s r r entire lives the golden y for living co w have to cluding: d to take ou distribution your retireme you may hav bts and bills th you have rm care cos complex is A good stra retirement i an. Sadly, t ir lifetime m ns like an nate disabilit ble and unpr ered even th y people to f their work retirement t to find a es of this curity will retirement s with the years, but mfortably take into ut of your ns, if any, ent plan. ve if you s you may collected sts during ssues that ategy for is through the reality may have untimely ty, or any reventable he best of oday find king years than they way to
- 2. com to re Thos retir rece retur inter choi when savin the t prov that retir $6,5 regu old plan and whil optio and guid exten clien max the and Toda delay retir year can two retir anot work inco retir you that retir for a For brok mpensate or m ealize the ret se who are ement acco ive the full rns on their rest rate en ices will not n interest r ngs can stil time you nee vides a few are continui ement. If yo 500 ($1,000 ular IRA or R you can als n (compared 401(k) plan le Roth IRA ons are alwa over age 50 delines on w nt. This is nts who ar ximize their r opportunity plans. ay, many p ying their ement date r you continu help your p ways. First ement mean ther year king and e ome and sa ement. Seco may not ne year for ement allow another year many Am ken down int 1. P 2. E make up for tirement they in their 50s ounts may l benefits f r investment nvironment, t grow as fa rates were h l have the o ed to access provisions ing or even ou are 50 or more than y Roth IRA. I so add an ex to your you ns provide f As can offer ays attractive , but there a who can p an area wh re interested retirement sa to discuss people are r actual e. Every ue to work lanning in , delaying ns there is you are arning an aving for ond, because eed to use y financial ws your nest . mericans, ret to four phase Pre-retirem Early retire the cash the y once desire s and 60s w not have t from compo ts. Also in many of fast as they higher. Your opportunity your funds. for individu starting to sa older you c younger sav If you are ov xtra $6,000 unger co-wor for tax-defer tax-free gro e for those s re many rest articipate an here we ca d in learni avings, we a their specif e you are st your retirem help. Dela t egg to hop tirement tod es: ment; ement; ey will need ed. without large the time to ounding the today’s low your safer would have r retirement to grow by The tax law uals over 50 ave for their an put up to vers) in your ver 50 years to a 401(k) rkers). IRAs rred growth, owth. These still working trictions and nd to what n help. For ng how to always enjoy fic situation till working, ment savings aying your pefully grow day can be d e o e w r e t y w 0 r o r s ) s , e g d t r o y n , s r w e Pre-ret period take a down your li This is ask yo money how yo a starti not nee retirem the per lower situatio conside expecte review meet yo Remem certain that ar additio in this retirem expect after yo helpful stick to E The ne stage o this ph still ha enthusi focus sports and tra 3. Fu 4. Fin Let’s ta each Pre-re tirement is t when you a look at and begin ife after you s the time yo ourself how y you will n ou can make ing point, m ed your ful ment but a h rcentage is h if you ear on is differen er preparin ed expenses w how much our unique s mber, most n expenses li re required onal expense phase that y ment to look to live so th our career ha l to think ab o and monito Early R ext stage is of retiremen hase, many p ave a lot of e iasm and the on enjoying (like golf a aveling. Dur ull retiremen nal retireme ake a brie h of these etiremen that time begin to slowing to plan ur career. ou should w much need and e the most o most experts ll earnings t high percent higher if you rn more. A nt, one of the ng an activ s in retirem you have s situation. people in r ike commut for work. H es such as he you map out k like and hat you can as ended. Th bout setting or your cash Retireme s the early nt. During people can energy and erefore can g physical and tennis) ring this pha nt; and ent. ef look at stages. nt Phas of your retire suggest that to carry you tage of it. O u earn less, a Although e e keys to suc ve budget ment. You saved and in retirement p ting costs an However, so ealth care. It t what you w how and w begin to pla his time peri some goals flow. ent Pha ase it is imp t se ement. As t you will u through Obviously, and can be veryone’s ccess is to of your can then nvested to pare back nd clothes ome incur is crucial want your where you an for life iod is also s you can ase portant to
- 3. have your due activ It is early to tr still for-p The deci durin corp and, insur The not j time for w Alth is im finan essen revie situa your offer This of y now reali and goal your Alth durin dow activ The Inste are l Duri club e a plan for r expenses w to potenti vities. not unusual y stage to wo raditional wo work on boa profit organi increase in sions durin ng this stag porate benefi if you w rance. challenges just financi e. Many reti work often hough early mportant to t ncial implica ntial that du ew of your ations do no r loved ones r assistance Full R s next stage our retireme w, you hav ized your tr fulfilled m ls you had p r retirement. hough you m ng this phas wn and may vities that ar hassles of ead, local ev less physical ing this phas bs that me cash flow. I will be high ially more l today for m ork on a par ork, many p ards of truste izations. n life expec ng this stag ge need to its such as li ork part tim of this earl al. They ca red clients f part time, s retirement m think throug ations for m uring this per r estate pla ot interrupt . This is ano to clients. Retirem is the middl ent cycle. By ve hopefully ravel dream many of th lanned for in may be in go se are more possibly fi re less fatig traveling do vents and the lly tasking so se many peo et regularly t can be ver her in these extensive many individ rt-time basis people in thi ees and volu ctancy can ge. Also, m replace or ife and heal me, possibl ly retiremen an also be a find themsel simply out o may sound a h the financ making this d riod that you an so any the comfor other area w ment Ph e y y ms e n ood health, m likely to dec ind more en guing and slo on’t sound a e pursuit of ound more a ople belong t y and pro ry likely that early years travel and duals in this . In addition is stage also unteer at not- affect your many people supplement th insurance ly disability nt phase are about filling lves looking of boredom. appealing, it cial and non- ecision. It is u hold a full unexpected rt of you or where we can ase many people cide to slow njoyment in ower paced. as tolerable. hobbies that appealing. to groups or ovide social t s d s n o - r e t e y e g g . t - s l d r n e w n . . t r l interact than in (such a In tod experts retirem taken d why w approp F The fin are the when y battling mental age. Du some r their ho care fa medica take up You ca due to p Regard approa you nee 1) R d ea to u st 2) P ad h g re b m th tion. Your n the early r as traveling) day’s low in s are recom ment plans b during period we like to sit priate withdra Final R nal years of e last stage you may fin g the phy challenges uring this fi retirees mov omes and in acilities or e al expenses p a significan an even bec physical lim C dless of your aching, here ed to consta Realize that different for arly phase a o have the usually be lo tage. People are li dvances in have extende generations. eview your basis to give meeting the c hroughout ea expenses m etirement ph have minim nterest rate mmending th be more con ds of higher with clients awal schedu Retireme retirement e. This is nd yourself ysical and s of old inal phase, ve out of nto assisted even nursing s, including nt share of y come restric mitations. Conclusi r age or whic are some i antly review t your cash r each phase and final pha most expe ower in the iving longer medicine, a ed people's li It is impera investment e yourself th cash flow n ach phase of may actually hase if your mized. environme hat withdraw nservative th r interest rate s to help dete ule. ent Pha g homes. Ma g prescriptio your monthly cted in your ion ch phase you important th and conside h flow need e of retirem ase have the enses. Expe full or pre-r r. Better hea and many n ives longer t ative to mo choices on he best poss eeds you wi f retirement. be lower r activities ent, many wals from han those es. This is ermine an ase any times on drugs, y income. activities u are in or hings that r: ds can be ment. Your e potential enses can retirement alth habits, new drugs than prior onitor and a regular sibility of ill require
- 4. 3) 4) 5) This if yo If y Mic Note: offer t guaran govern declini Source ) It is impe your inve various c patterns a retiremen revisit how based upo changes, g tolerances. ) It is essent term care burial e retiremen ) It is crucia distributio We have e interest rat affect your environme s year, our ou would: Suggest a Share thi Those clie you are cur one chael L. Schwartz, The views stated i to buy or sell any s nteed. Please not nment policy. Inve ing values. Past pe es: www.irs.gov; K T erative to p estment por changing p as you go t t stages. Yo w you can on your a goals, need . tial to revie and other c expenses) t. al to constan ons from yo experienced tes over the r portfolio. ent it is even Schw goal is to o a friend to re is newsletter nts who do inc rrently not e‐hour, con RFC, CWS, CFS, a r in this letter are n securities mention te that statements esting involves risk erformance is no g Kiplinger Tax Letter This information is Schwar periodically rtfolios to priorities through ea ou should sy n adjust you actual life s, objective ew your nee costs (like m before an ntly monito our retireme a significan last decade In this low n more essen wartz Fin ffer our ser ceive our ma with a friend o any of the cludes our s a client of sultation w registered principa Schwartz Fina ot necessarily the ned herein Informa s made in this new including the pote guarantee of futur r; Barron’s; Bankra not intended to b We suggest that y rtz Financial 115 O y rebalance reflect the and living ch of these ystematically ur portfolio and health es, and risk ds for long- medical and nd during or your cash ent savings. nt decline in and that can interest rate ntial that you nancial 20 rvices to sev ilings or colleague above will sincere grat Schwartz F with one of al offering securiti ancial and Indepen opinion of Indepe ation is based on s sletter may be sub ential loss of princ e results. Please n ate.com; Fact Chec e a substitute for s you discuss your sp l Services | w Old York Ro e e g e y o h k - d g h . n n e u h y ra w to re lo The bo retirem and m consta Our ro stage o and sa individ fully u and e (215)88 any as 015 Client veral other e be entered titude and a Financial, w our profes es and advisory se ndent Financial Gr endent Financial G sources believed to bject to change de cipal. No investmen ote that individua cked by Keebler & specific individuali pecific tax issues w www.schwart oad | Jenkint have a strate your portfolio ate might h with today's o make sure easonable a ong-term. ottom line i ment it is w monitor. Rem ant is change ole is to hel of your ret atisfaction in dual situati understand state plann 86-2122 if y sistance and t Advoca r clients like Bring a gues Share the ne consultation d into our C a special ev we would lik sionals. Ple ervices through In roup are unaffiliat Group, LLC., and sh o be reliable; howe epending on any re nt strategy can gu al situations can Associates; © The ized tax, legal or in with a qualified tax tzfinancial.co town, PA 190 egy for takin o. In the pas have been low interest e that your and will be is that throu wise to make member, th e! lp and assis tirement. W n reviewing ons and ne and revie ning needs. you have an d we will be te Progra e yourself. W st to one of ou ews of our co ns Client Advoc vent this fal ke to offer ease call, 21 dependent Financ ted entities hould not be const ever, their accurac evisions to the tax uarantee a profit o vary. e Academy of Pref nvestment plannin x advisor. om | 215.886. 046 ng distributi st, a larger di acceptable, t rates it is im withdrawal sustainable ughout each e sure that he only thin st you thro We take gre g each of ou eeds. Our g ew your re . Please ca ny question e happy to am We would b ur workshops mplimentary cate Progra l. you a comp 15.886.212 cial Group, LLC Me trued, directly or i cy or completeness code or any addit or protect against ferred Financial Ad ng advice. .2122 ions from istribution however, mperative rates are over the h stage of you plan ng that is ugh each eat pride ur client’s goal is to etirement all us at s or need help you. be honored s y am which plimentary 22. ember FINRA‐SIPC ndirectly, as an s cannot be tional changes in loss in periods of dvisors, Inc. 2015 , C.