Five Pillars That May Be Able Uphold Retirement’s Basic Principles

While an easy-breezy retirement can seem elusive, a well-constructed retirement plan can push those dreams closer to reality. Two of the most often-mentioned roadblocks to overcome are the fear of outliving one’s money, and the soaring cost of anticipated healthcare.

Accordingly, experts encourage a sense of urgency in creating a plan. Not just a simple plan, but one that that has the input of several subject matter experts whose ideas can work together. Additionally, they cite five key areas that should be a part of any retirement planning conversation.

1. An understanding of the couple’s living situation, and any short and long-term goals.

2. A facts and numbers-driven assessment of the retirees’ assets. The result should be a preservation-focused approach that highlights protection over growth.

3. A review of taxes that allows for maximum retention of Social Security, and minimum repercussions for any heirs.

4. Healthcare costs to include both in-home and nursing homes. According to a
2016 study by Fidelity, 65-year old couples retiring today can anticipate an average of nearly $400,000 in healthcare-related expenses; $260,000 for medical costs + $130,000 for long-term care.

5. A legal framework to include wills and trusts that roll into an effective estate plan.

A comprehensive team approach can include input involving income, investments, taxes, insurance, legal, real estate and final expenses. In addition to having a team working for them, clients can expect high levels of continuity and integrity to keep any remaining assets in the hands of family and designated beneficiaries, rather than institutions.