May 19, 2022

5 Issues to Consider Before You Retire, Ep #98

20 minutes

These are 5 things that you might forget about that can make a HUGE impact on your retirement. These five issues are things that you need to consider when you create a retirement plan—or they could derail your retirement. Listen to this episode of the Retirement Made Easy podcast to find out what they are (and what you can do about it).

You will want to hear this episode if you are interested in...

[1:26] Check out our FREE resources at RetirementMadeEasyPodcast.com
[4:46] Issue #1: Do you want to leave an inheritance?
[76:30] Issue #2: Do you plan to downsize or relocate when you retire?
[8:49] Issue #3: What is a 62-year-old couple facing in their life?
[11:00] Issue #4: What is your plan to pay for your own care?
[12:03] Issue #5: What big expenses do you have on the horizon?
[17:08] Listener Question: Would I work with a stockbroker?

Issue #1: Do you want to leave an inheritance?

Do you want to leave an inheritance for your kids or grandkids? Do you want to leave a gift to your church or charity? What does that look like to you? To what extent do you want to make a financial impact in their lives?

Many couples don’t agree on this topic. More often than not, the wife—with a more maternal instinct—wants to take care of her kids and grandkids. The husband usually wants to make sure they’re cared for first. If you’re married, you want to be on the same page with your spouse. If it’s important to one of you to leave an inheritance, that has to be planned for.

Issue #2: Do you plan to downsize or relocate when you retire?

Have you thought about moving closer to family? Or are you going to be a snowbird and retire to Florida? If you’re going to relocate or downsize, maybe it doesn’t make sense to pay off your mortgage. If you move to a state like Florida, that plays into the decisions you make as well. If you do a Roth conversion in Florida, you won’t have to pay state income tax. So it makes sense to wait until you live there to do the Roth conversion. How will the move impact your budget and cashflow? Will you have HOAs? Higher property taxes? Will utilities increase or decrease? These are all questions you need to consider, if not answer.

Issue #3: What is a 62-year-old couple facing in their life?

Are your parents still living? How is their health? How far away do they live from you? Who will care for them if you retire out of state? Do you have siblings to help care for them? My mom was the oldest of three. Her parents and siblings were local. But her siblings were younger and both working. When my mother retired, instead of traveling and living out her retirement dreams, she ended up caring for her parents. She did all of their shopping, took them to doctor appointments, etc. The first years of her retirement were focused on caring for them.

Issue #4: What is your plan to pay for your own care?

When the time comes, will you get a long-term care policy? Will you self-insure? What will the costs be when you need the care? It may cost less if you live in a rural area. Quality care costs around $8,000 a month in St. Louis, MO—and that’s the price today. What will it be in 20–30 years? This is a question you must consider even if you are in the best of health.

Issue #5: What big expenses do you have on the horizon?

Large expenses need to be accounted for in your retirement plan. What do I mean by large expenses? Maybe you need a new vehicle. Maybe your home needs a new deck or a kitchen remodel. Maybe you want to pay off your mortgage. Maybe you want to purchase a camper. Do you have a future wedding to keep in mind? What about a child or grandchild’s student loans? You have to plan for these big expenses, goals, dreams, and visions.

If you wake up one day and decide “I want to buy a $45,000 pontoon boat” it can seriously mess up your retirement plan. But if you planned two years ahead of time, your retirement plan can be adjusted. Listen to the whole episode to hear a story about someone who didn’t plan for these types of expenses. Plus, I answer a listener question I’ve never been asked before.

Resources & People Mentioned