Are you planning to retire in 2023? In this video we will analyze what to consider before retiring.
In this video Ryan discusses 7 topics like tax planning, distributions, retirement spending, healthcare, long-term care and having a purpose in retirement.
So what to consider before retiring in 2023?
Retirement is an exciting time in one’s life, but it’s important to plan ahead before making the transition from working to retired life. In this video Rian talks about what to consider before retiring in 2023.
The first and most important consideration is reviewing your retirement financial plan.
This plan should include a thorough understanding of your risk capacity versus your risk tolerance. Risk tolerance is the amount you think you can afford to lose in a down market and not panic, while risk capacity is what you could actually afford to lose and still be able to have enough asset base or enough money left to produce the income that you need to maintain your desired lifestyle during your golden years. It’s important to understand your risk capacity as part of your financial plan.
Next, you’ll want to have an income plan in place.
When you retire, it’s not about net worth; it’s about having a paycheck you can outlive. Ensure that you have an investment plan that matches your risk tolerance, risk capacity, and provides income in all market situations.
The third consideration is having a tax plan.
Taxes can be the biggest expense you have in retirement, even more than healthcare. A tax-efficient investment plan can include doing some Roth IRA conversions, taking Social Security at the right time, and saving money in the right composition of accounts before you retire.
The fourth consideration is having a healthcare plan.
It’s important to wait until Medicare age before retiring to ensure that you have health insurance. You could also go to the ACA exchange and get health insurance there. A good advisor can help you navigate the complications of a good healthcare plan in retirement.
The fifth consideration is a legacy plan.
Legacy planning is what happens to your assets after you’re gone. You don’t want to leave an unplanned estate behind that can destroy the strongest family units. A good legacy and estate plan can help mitigate tax liability for your heirs.
The sixth consideration is inflation.
We’re dealing with the highest inflation we’ve had in our country in quite some time. Growth assets are super important to have in your portfolio to help combat the long-term negative effects of inflation. It’s important to not take too much risk, but also not to take on too little risk.
The final consideration is protecting your money from the market.
There are a few ways to do this, such as not having all your money in the stock market or the bond market. Having a balanced approach between risk money and safe money is crucial.
In conclusion, when you ask your self what to consider before retiring in 2023, by reviewing your financial plan, having an income plan, tax plan, healthcare plan, legacy plan, understanding inflation, and protecting your money from the market, you can ensure a comfortable and secure retirement.
Our Channel “ ON THE MONEY“, is powered by Allied Wealth, Houston’s premier wealth management and financial planning firm. On the Money brings viewers educational, topic-driven, and real-life financial scenarios every week.
Topics we will be covering are Retirement and Financial Planning, Investment Selection, Retirement Income Planning, Taxes and Taxation during Retirement, Healthcare, Long Term Care, Legacy and Estate Planning, in addition to important Market and Economic changes impacting Retirement.
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