As you approach the age of 60 with retirement on the horizon, taking a proactive approach can give you a sense of control and ensure a smooth transition into this new phase of life. This comprehensive guide is designed to empower you to navigate the complexities of planning for retirement, covering everything from financial strategies to lifestyle adjustments.
1. Financial Assessment
Begin by conducting a thorough assessment of your current financial situation. This involves reviewing all your assets, including savings accounts, investments, retirement accounts, and other financial resources. Understanding what you have will help you determine if there are any gaps in your funding that need to be addressed before you retire. Calculate your anticipated living expenses, factoring in inflation and potential healthcare costs, as these can significantly impact your budget. The importance of this step is to set the foundation for a secure retirement by aligning your expectations with reality.
2. Income Planning
Once you have a clear picture of your financial landscape, the next step is to plan your income. Determine how much money you will need annually to support your desired lifestyle, including essentials and leisure activities. It’s crucial to account for inflation, which can erode your purchasing power over time. Strategies such as investing in growth-oriented financial instruments can help mitigate the impact of inflation. Additionally, consider the timing of your Social Security benefits. Although benefits can be claimed as early as age 62, delaying until full retirement age or later can significantly increase your monthly payouts, ensuring more financial comfort in the later years of retirement.
3. Debt Management
Achieving a debt-free status before retirement is ideal for many. High-interest debts, such as credit card debts and personal loans, can drain your resources. Focus on paying off these debts to free up more of your income for retirement savings. Being debt-free not only adds a layer of financial security and allows for more flexibility in your retirement budget, but also brings a sense of accomplishment and control over your financial future.
4. Healthcare Considerations
Healthcare is a critical component of retirement planning, especially if you plan to retire before becoming eligible for Medicare at age 65. Explore all available healthcare options to ensure continuous coverage. This may include extending your current insurance through COBRA (Consolidated Omnibus Budget Reconciliation Act) or finding a suitable plan in the marketplace. Adequate healthcare coverage is essential to prevent significant out-of-pocket expenses from unexpected medical issues.
5. Investment Strategy
As retirement nears, it’s wise to adjust your investment portfolio towards more conservative assets to protect your savings from market volatility. However, maintaining a balanced mix that includes some growth-oriented investments is important for keeping up with inflation. Regular consultations with a financial advisor can help you navigate these changes and ensure that your investment strategy aligns with your risk tolerance and financial goals.
6. Withdrawal Strategy
Developing a strategic plan for withdrawing from your retirement accounts can significantly impact your tax liabilities and income longevity. When considering withdrawals, be aware of the rules surrounding Required Minimum Distributions (RMDs) and the tax status of your accounts – traditional IRAs and 401(k)s are taxed at ordinary income rates upon withdrawal, whereas Roth accounts offer tax-free withdrawals. Timing these withdrawals to occur in years when your income is lower can help minimize the amount of taxes paid and preserve your funds for longer.
7. Lifestyle Adjustments
Retirement is not just a financial transition but a lifestyle one as well. Consider downsizing or relocating to a more cost-effective community to better align your living situation with your financial reality. This can involve moving to a state with lower taxes or a region with a lower cost of living. Such changes not only reduce daily expenses but also can offer new social opportunities and a more community-oriented lifestyle, which can be especially rewarding in retirement.
8. Social Engagement
Maintaining an active social life is crucial for your mental and emotional well-being in retirement. Engage in hobbies, volunteer work, or join clubs that align with your interests. Building a network of friends and acquaintances who share similar interests can provide a sense of community and purpose. This engagement is often linked to improved health outcomes, as staying socially active can help reduce stress, prevent loneliness, and increase life satisfaction.
9. Proactive Management
Stay informed about changes in regulations that may affect your retirement benefits, such as Social Security or tax reforms. Being proactive and adapting your plans accordingly is crucial for maintaining financial stability throughout your retirement years. Regularly review your financial plan with us to ensure it reflects current laws and economic conditions, and attend workshops or seminars that focus on retirement planning and financial health.
10. Continued Education and Personal Growth
Embrace learning and personal development in your retirement years to keep your mind sharp and your skills relevant. Whether it’s taking classes at a local university, learning a new language, or picking up a new hobby, continued education can enrich your life, provide routine, and open up new opportunities for social interaction. Many community colleges and online platforms offer courses specifically tailored for retirees, making learning accessible and enjoyable.
By carefully planning and addressing these key pillars of retirement planning, you can ensure that your golden years are financially secure but also enriching and fulfilling. Remember, the goal is to transition smoothly into a phase of life that allows for both relaxation and active engagement, supported by a well-thought-out financial plan.
If you have any questions, give us a call. For additional insight, read “Wealth on Purpose” by Bryan Ballentine.
Sources: Located at the bottom of the article
Golf Tip of the Week:
This simple drill with a bath towel can solve your short-putting woes
This is the key to start nailing those gimme putts that you can’t seem to sink.
Putting—it’s the one facet of the game even beginners feel like they can manage without looking silly. That’s what makes missing the short ones so infuriating. How can something so simple sometimes be so difficult? Although you might want to put the blame on being nervous, the more likely issue is what you’re doing during the stroke.
If you’re frequently missing short putts, especially ones where the ball doesn’t even catch the edge of the hole, there’s a good chance you’re moving your body too much. Have a buddy put your mobile-phone camera to use and video you while you putt. Pay close attention to your body action, not the stroke.
Do you see any movement in your lower body? Bingo! That’s the culprit on so many of those short misses. Any movement in the lower body is a putting killer. When you can’t stay still from the waist down, you’re likely affecting your ability to keep the putter’s face square to your line of putt. (I’m assuming your ability to read the break on the short ones is pretty accurate.)
What’s going on when your body is too active? My theory is that you’re probably anxious to see the result (like I’m demonstrating above) so you come out of your posture. Or, the expectation of making the short ones prompts you to try to steer the ball into the hole. Neither will help you make a smooth stroke with a square putterface, which is key to sinking these putts.
To fix this problem, grab a regular bath towel and pin it under your arms and across your chest. Keep it there as you practice hitting putts, using your abdomen to control the stroke (photos, below). Now here’s the key: Feel like your lower body is perfectly still as you practice your stroke with the towel. This drill works because it calms all that extraneous movement.
Golf Tip adapted from golfdigestcomi
Recipe of the Week:
Ghost Brownies
Ingredients
Nonstick cooking spray
1 cup all-purpose flour
1/4 cup plus 1 tablespoon unsweetened cocoa powder
Kosher salt
1 stick (8 tablespoons) unsalted butter
8 ounces semisweet chocolate, chopped
1 cup granulated sugar
1 tablespoon pure vanilla extract
3 large eggs
2 ounces white chocolate, chopped
1/4 cup confectioners’ sugar
Store-bought squeezable black icing
Directions
- Preheat the oven to 350 degrees F. Line an 8-by-8-inch baking pan with foil, leaving a 2-inch overhang on at least 2 opposing sides. Spray the foil with nonstick cooking spray.
- Whisk together the flour, 1/4 cup of the cocoa powder and 1/4 teaspoon salt in a medium bowl.
- Melt the butter and semisweet chocolate in a medium saucepan over medium heat, stirring frequently until smooth, 3 to 4 minutes. Remove from the heat and stir in the granulated sugar, vanilla and eggs until combined. Add the flour mixture and stir to combine. Pour the batter into the prepared pan and bake until a toothpick comes out with just a few crumbs, 20 to 23 minutes.
- Let the brownies cool completely in the pan on a wire rack, about 1 hour. Use the foil overhang to help lift them out of the pan onto a cutting board.
- Meanwhile, microwave the white chocolate in a medium microwave-safe bowl in 30 second increments, stirring in between, until melted and smooth, about 1 minute. Place a piece of parchment paper on a large plate or sheet pan. Dollop 1/2 teaspoon of the melted white chocolate onto the parchment and use the back of the measuring spoon to sweep through the dollop to make a ghost shape. Repeat 15 more times. Draw 2 eyes and a mouth with the black icing on each ghost. Refrigerate the ghosts until the white chocolate has hardened, about 30 minutes.
- Just before serving, whisk the confectioners’ sugar, remaining 1 tablespoon cocoa powder, pinch of salt and 1 tablespoon water in a small bowl until smooth. Spread the glaze on top of the brownies. Cut the brownies into 16 squares and top each with a white chocolate ghost. Serve right away or store the brownies in an airtight container for up to 1 week.
Recipe adapted from foodnetwork.comii
Travel Tip of the Week:
Yelp’s Newest Features Help People With Disabilities Find Accessible Businesses
Those with disabilities can find establishments accommodating movement, visual, and hearing needs.
For the 42.5 million Americans with disabilities, navigating businesses that accommodate their specific accessibility needs can be a daily challenge. In recent years, Yelp has noticed more people looking for specific accommodations, particularly with searches for “wheelchair accessible” spiking 40 percent from 2020 to 2023.
So earlier this summer, the business reviews company added eight additional accessibility attributes that can be searched. Four of the new filters are mobility-related: “Accessible parking near entrance,” “ADA-compliant main entrance,” “ADA-compliant restroom,” and “No steps or stairs.” The first three follow guidelines as defined by the Americans with Disabilities Act of 1990 (ADA), such as requiring entrances to have a width of at least 32 inches when a door is opened to 90 degrees.
Two new attributes are for hearing accessibility: “ASL proficient,” which requires at least one staff member who is proficient in the language to be available during business hours, and “Closed captioning on TVs” for establishments that have captions on at least one television.
For vision accessibility, both are in regards to the menus: “Braille menus available” and “QR code menus available,” with the latter allowing guests to enlarge content on their devices or use assistive screen readers.
In addition to the new attributes that can be searched, Yelp is also helping those with visual impairments with AI-driven alternative text descriptions on images and better color contrast to make them more visible for those with color blindness or low vision. It has also improved its experience for adaptive screen readers.
“With these new accessibility attributes, we’re excited to help businesses more clearly indicate their inclusive practices to make it even easier for people to find the right business for them,” the company’s senior vice president of product Akhil Kuduvalli Ramesh said in a statement shared with Travel + Leisure. “For people who use screen readers, we hope some of our recent platform updates will make the experience of finding that great local business even more seamless.”
The company worked with Disability: IN, the American Association of People with Disabilities (AAPD), Open to All, and The Arc to develop its new features, as well as provide businesses with an Accessibility Resource Hub to make their establishments more accessible for all guests.
“Making Yelp and the world more accessible makes daily life easier for everyone and we look forward to continuing our work to create a more accessible and inclusive world for everyone,” Ramesh added.
Tip adapted from travelandleisure.com iii
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Our mailing address is:
Ballentine Capital Advisors
15 Halton Green Way
Greenville, SC 29607
Sources:
Planning to retire in 2024? Do these 7 things now
5 Steps to Retirement Planning in 2024: An Introduction and How-to Guide
If You Want to Retire in 2024, Here’s What You Need to Prep Now
Disclosure:
Ballentine Capital Advisors is a registered investment adviser. The advisory services of Ballentine Capital Advisors are not made available in any jurisdiction in which Ballentine Capital Advisors is not registered or is otherwise exempt from registration.
Please review Ballentine Capital Advisors Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.
This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.
No representation is being made that any account will or is likely to achieve future profits or losses similar to those shown. You should not assume that investment decisions we make in the future will be profitable or equal the investment performance of the past. Past performance does not indicate future results.
Advisory services through Ballentine Capital Advisors, Inc.
iihttps://www.foodnetwork.com/recipes/food-network-kitchen/ghost-brownies-12701404
