Many of us underestimate the complexity of the financial and lifestyle shifts that come with retirement. Retirement planning is multifaceted and involves areas where specialized knowledge is beneficial and needed. It’s not a sign of weakness to seek help but a sign of being proactive and wanting the best outcome for your future.
Starting retirement, especially without a team, can feel overwhelming and lead to costly mistakes. Professionals can provide specialized knowledge and advice on investment strategies, tax planning, estate planning and other aspects of retirement.
Building a retirement team of professionals is crucial before retiring to ensure a well-structured and secure financial future. A team approach allows for more comprehensive planning ensuring all areas are addressed. Your team can help you stay on track with your retirement plan and provide support as you transition into retirement. Lastly and maybe most important, your team of experts can alleviate much of the stress and uncertainty associated with retirement planning.
Here’s who you should have on your retirement team!
- Financial Advisor (Retirement Specialist): Retirement finances are often more complex than in the accumulation phase. Navigating Social Security taxation, IRA and 401(k) withdrawals, required minimum distributions (RMDs) and generating sustainable income requires expert guidance. The Financial Specialist is often the quarterback of the team and will have deep knowledge of the unique challenges and opportunities retirees face.
- Tax Advisor (CPA): Taxes can significantly impact your retirement income. Proactive tax planning can save you a substantial amount of money over the long run. A Tax Advisor helps navigate the often intricate tax implications of retirement income, including Social Security taxation, IRA and 401(k) withdrawals, capital gains and potential state taxes. They can also assist with tax-efficient planning and withdrawal strategies.
- Estate Planning Attorney: Retirement is a time to think about legacy planning and protecting your loved ones. Proper estate planning provides peace of mind and avoids potential legal complications. An Estate Attorney assists with creating essential legal documents such as wills, trusts, power of attorney (for healthcare and financial matters and advanced directives). This assures your wishes are respected and your assets are distributed according to your plan.
- Healthcare Advisor/Insurance Specialist: Healthcare cost are a significant concern in retirement. Understanding your options and having adequate coverage is essential for financial security and well-being. A Healthcare Advisor helps navigate the complexities of healthcare in retirement, including Medicare options, Medigap plans and potentially long-term care insurance. They can help you understand your coverage options and help you make informed decisions about your healthcare insurance needs.
- Lifestyle/Retirement Coach (Optional but Valuable): Retirement isn’t just about money, it’s a significant change in the way you think about the future. A coach can provide guidance and support in creating a fulfilling and meaningful post-career life. A Lifestyle coach will focus on the non-financial aspects of retirement, such as finding purpose, structuring your time, exploring new hobbies, maintaining social connections and navigating the emotional transitions of leaving the workforce.
How to build your retirement team!
- Start Early: Begin building your retirement team several years before your planned retirement date.
- Do Your Research: Read articles, attend seminars and talk to friends and family who have retired to learn more about the professionals you need.
- Interview Potential Professionals: Meet with several advisors, accountants and estate attorneys to find the best fit for your needs.
- Consider Cost: Factor in the cost of professional services when making your decisions.
- Communicate Regularly: Stay in regular contact with your team members to ensure that your plan is up-to-date and you are achieving your goals.
You don’t need to assemble your entire dream team overnight. You may want to spend some time before retirement learning the basics of retirement and retirement planning, so you will be better informed, when you start building your team. But, if you’re getting close to retirement, understanding your income options and tax implications might be the top priority. You should probably seek a financial advisor and tax professional first.
If you’re still hesitant to start building a team or thinking you can continue doing your retirement planning yourself, I encourage you to start with a fee-only financial advisor who acts as a fiduciary. View this advisor as an investment and not an expense. This advisor can help you identify any mistakes or shortcomings in your plan and advise you on other areas where specialized expertise might be needed. They can often help you find other professionals.
Even if you’ve already retired, it’s not too late to build your Team of Advisors. Getting professional guidance at any stage of your retirement journey can be beneficial.
Early planning for retirement and having your dream team of experts working with you will help ensure your retirement years are the best they can be!
Over the next few posts, I will explain the core credentials and expertise to look for in each team member. I will also give you a few questions to ask when choosing your team.
Thank you for taking the time to read this article
If you would like, please leave a comment below or you can email me at www.feedback@wewaonthenet.com.
I’m also starting a YouTube channel, www.youtube.com/@wewaonthenet where I will be discussing various retirement topics and topics I come across that I think may be of interest. Check it out!
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