Brian Skrobonja goes through the five questions you need to answer to gauge how prepared you are for retirement.
He covers the benefits of having a detailed income plan, how to design a comprehensive tax strategy, and what it takes to enjoy your retirement without constantly second-guessing your financial decisions.
- Brian starts the conversation by explaining why retirement is more than just a financial milestone. It’s a complete shift in how you use money and approach life.
- According to Brian, setting a retirement date before having an optimized retirement plan is like quitting a job before you have another one lined up.
- Retirement isn’t just about having money in the bank or having an investment account. It’s about understanding how that money converts into consistent, reliable income that can support your lifestyle for decades.
- Retirement’s a great thing–and it could be very good, but you need to be prepared.
- Brian goes over the questions that gauge how well prepared you are for retirement.
- Do you have a detailed income plan? Too many retirees assume that their portfolio will increase in value in a straight line and last forever.
- The problem with assumptions is that it leads to gaps. And even a small gap in your expenses or income can compound into significant financial stress over time.
- For Brian, if you haven’t taken the time to answer the hard questions about how much you’ll need, where that money will come from, and how taxes and inflation will affect it, you’re setting yourself up for a lot of uncertainty–and uncertainty is the last thing you want in retirement.
- When you’re working, your paycheck funds your lifestyle. In retirement, your assets become your paycheck.
- The most important part of planning for retirement is knowing your number–How much money it will take to sustain your ideal retirement lifestyle.
- Brian explains how retirees can develop the confidence to enjoy their retirement without constantly second-guessing their financial decisions.
- Social Security is often viewed as a cornerstone of retirement income, but it’s also one of the most misunderstood.
- According to Brian, people assume Social Security will cover a significant portion of their expenses, but the reality is that Social Security is designed to only supplement your income, not replace it.
- Brian highlights how continuing to work in some capacity in retirement can provide a sense of purpose and help you remain connected to your community.
- Brian talks about the benefits of purposefully organizing your assets.
- He shares how categorizing your assets into three buckets–immediate income, long-term growth, and cash reserves–can help ensure your money works seamlessly to support your life, goals, and dreams.
- Brian explores the benefits of having a tax strategy.
- Taxes can erode your retirement savings faster than you think. They’re not as brutal as market volatility or inflation, but their impact can be just as significant.
- Without a proactive tax strategy, you’re leaving the door wide open for the IRS to take more of your hard-earned money than necessary.
- For Brian, one of the best ways to manage taxes is to strategically time your withdrawals. This might mean pulling from your taxable and tax deferred accounts first, leaving your Roth IRA for last.
- Understand that taxes aren’t just a problem to solve, they’re an opportunity to optimize.
- Brian answers a question most retirees ignore: if something happens to you, will your spouse be financially secure.
- A great place to start answering this question is Social Security Optimization. The timing of when you or your spouse claim Social Security benefits can significantly impact the survivor benefits.
- Brian talks about estate planning and why you need to keep your documents up to date.
- Without regular updates, the documents meant to protect your wishes and your loved ones can unintentionally cause stress, confusion, or worse, legal disputes.
Mentioned in this episode:
Common Sense Financial Podcast on YouTube
Common Sense Financial Podcast on Spotify
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