Are your expectations of retirement realistic? We talk through four things to keep in mind when you dream about your retirement future.
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We all need a reality check from time to time. What kind of retirement expectations do you need to manage? What will retirement actually look like and how do you need to prepare?
When you think about retirement, maybe you envision extended time away from work that looks like a vacation. But the reality is, retirement won’t feel like a vacation every day. You may not have the same daily grind as when you’re working, but you’ll still have the upkeep of daily life.
Whether you are traveling more or not, there will likely be a change of expenses when you get to retirement. Healthcare costs are a big one that people find themselves suddenly paying more for. Some people go from having a company car to needing a personal car, but others will be saving money on their commuting costs. Maybe you eat out less or maybe you eat out more in retirement. All of these are things you’ll want to think through and consider your budget in retirement. Things will always change, so be sure to stay flexible as your plan need to adjust accordingly.
There’s a lot to preserving your money and making it last through retirement. It’s okay to ask for help in order to make adjustments and improvements to your financial plan. Financial advisors do this every day, whereas you’ve been pouring your time and energy into your own career and life. Eric is constantly learning and improving his industry knowledge to keep his clients on the cutting edge.
Listen to the entire episode or skip ahead to a particular quote using the timestamps below.
[0:46] – How can we manage expectations?
[4:16] – Account for a change in expenses.
[8:01] – You need to be flexible.
[8:56] – Ask for help.
“You want your advisor to be someone that’s going to be: 1. a fiduciary; 2. doing what’s in your best interests, but also growing themselves. Ask them what they are doing to improve their knowledge base.“
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