Planning Your Retirement Lifestyle

Retirement should be about doing what you enjoy, whether that be travel, pursuing hobbies, or spending quality time at home. Learn how to financially plan your retirement lifestyle now so that you can prioritize what's important to you later. 

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Transcript

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Welcome to you and your money. Today's episode features Lawrence Hale, principal managing partner and chief investment officer at Weiss, Hale and Zahansky Strategic Wealth Advisors. Now, today on the show, we'll be discussing the important topic of planning your ideal retirement lifestyle. I know a lot of our listeners are either approaching retirement or already retired, and they're looking for guidance on making the most of this new chapter. Retirement should be an exciting and fulfilling time, but it does require some thoughtful planning to ensure you can live the lifestyle you envision. Lawrence, what are some of the key factors people should consider when envisioning their retirement lifestyle? That's a great question, Wayne. Thinking about retirement brings up a lot of emotions for people. Excitement, anxiety. One of the first things you need to do is think about what your desired lifestyle might look like. Do you want to travel frequently, explore new hobbies, or simply enjoy more time at home? One of the first things is make a list of specific goals, activities, and experiences you hope to have in retirement. And this could include anything from international vacations to pursuing a lifelong passion like painting or gardening. And it's also important to consider where you want to live. Do you want to stay in your current home and community? Potentially downsize or relocate to a new area that better aligns to your retirement dreams, maybe has warmer weather? And really try to paint a vivid picture of your ideal daily life and routines in retirement. And that can help you provide clarity as you move forward through the planning process. That's great advice. And once somebody has that vision in mind. And what's the next crucial step? Well, the next critical step is to determine what the annual costs associated with bringing that vision to life is. And this involves carefully estimating all of your expected expenses, things like housing and healthcare, travel, leisure activities, and anything else you plan to enjoy. And don't forget to factor in costs like taxes and the potential impact of inflation over time as well. So using a comprehensive retirement planning calculator like the, the one we have on our website can really be a great tool and extremely useful here. And these can help you input your specific lifestyle goals and projected expenses, and then they'll provide you with a detailed breakdown of the annual funds you'll need to cover these costs. Sort of like a retirement budget if you will. And having a clearer picture of your retirement spending is really essential for ensuring that you save and invest enough money to sustain your desired lifestyle. Because if you think about retirement, it's really life without a paycheck. So you've got to make that paycheck up. And that website is whz wealth.com. so you've got the vision and the cost estimates. What's the next piece of the puzzle? Well, the next step is to take a thorough inventory of all your potential income sources in retirement. And this includes things like Social Security benefits, possibly pensions, investment accounts, annuities, or any other savings vehicle that you've built up over the years. And the goal here is really to try to structure your retirement income in a way that your guaranteed sources, like Social Security and pensions, will cover your basic living expenses. This allows you then to realize to utilize your investment accounts and other supplemental income sources to fund the lifestyle activities and experiences you've envisioned. And striking the right balance between that guaranteed income and discretionary spending is crucial for long term sustainability. That is a smart approach. And for the listeners who may be feeling overwhelmed by all of this, do you have advice on how to approach the transition into retirement? Absolutely, Wayne. It's a big change for just about everyone who ventures into it, and the transition from full time work into retirement can really be a significant adjustment, both mentally and emotionally. So exploring a more gradual approach, rather than jumping straight from your career to a completely open ended retirement, can really help ease that transition. And one option to consider is maybe going part time for a few years before retiring. This allows you to slowly ease into your lifestyle change and maintain some level of routine and engagement, which is important for a lot of people. Alternatively you could explore something like an, what's called an encore career, meaning pursuing a lower stress job or small business venture that keeps you active and fulfilled, but is also providing you with some supplemental income. But really, the key is finding a transition path that works for your unique situation and preferences. And this gradual approach can really make a big difference in helping you adapt to retirement in a healthy and sustainable way. Excellent advice, Lawrence. And beyond just the financial aspects, what other factors should people be considering for a successful retirement? Well, financial planning is critical. It's truly fulfilling. Requirement requires attention to your overall health and well being as well. So don't forget that it's important to stay physically active, eat well, nurture your social connections, and continue to challenge your mind. So retirees who prioritize these elements of wellness tend to experience higher levels of happiness and life satisfaction, particularly in retirement. Things like daily exercise, engaging in hobbies, volunteering, or lifelong learning can all contribute to a sense of purpose and vitality in retirement. And it's about finding ways to stay mentally and physically engaged, not just financially secure. Well, you deal with a lot of people in your time and experience at Weiss Hale in Zahanski. Give me an idea as to the youngest and conversely, the oldest age that people will come to you looking for retirement advice on how to do it. I mean, do you get people, like, in their forties, that are getting ready to pull the plug and retire, or is that a little bit early? Well, you know, we've sort of seen it all. There are people who come to us, you know, either clients of children of clients, or folks who are in there, maybe even teens, who really want to get started in saving money and looking at things in earnest. They may be away from retirement, but we've had clients retire in their forties or fifties. It's usually a little bit of a rarity for those in their forties. But if you own a business and sell it, and then we've got clients who really never want to stop working, which is perfectly fine, as long as they feel that they're enjoying work and it's fulfilling. And they may have the resources to retire, but they love what they do and want to keep doing it as long as they can. Maybe touch a little bit on the tax implications of retirement, how that changes things when it comes to April 15. Well, making sure that you're planning, planning for your income and what tax implications. You know, having a good accountant, good CPA on your side is really critical. And looking at are you receiving things like pension incomes or distributions from retirement accounts versus living on dividends and capital gains? Those have drastically different tax implications. And making sure that you're either withholding enough money or paying enough in quarterly estimated taxes so that you don't get a big surprise come April, and maybe even have to pay some interest and penalties if you underpay your taxes. So good planning on the tax side is an equally important part of that overall financial retirement plan. Lawrence, you talked about some of the older people who just want to keep on working do you get a sense from some of those people that maybe this whole concept of retirement is intimidating or scary, and they're not looking forward to going to the work today and then tomorrow morning, lounging around the living room all day in your skivvies? Yeah. You know, and I think that goes, Wayne, to the question of do you have some vision for doing something different in retirement if you love what you do and you're enjoying your career and adding, you know, contributions and, you know, it is your identity, it either can be intimidating or, or a really challenging thought to think that that may not be part of your life, but, you know, a lot of people will look at how do I. I slowly phase back from my current career or current job, and there are increasing opportunities at different companies where you have a lot of institutional knowledge, you know, how the business or operation is being run, and maybe consulting and working part time, doing the same thing you were doing. But having a little bit more flexibility in your schedule can give you that, you know, dip your toe into retirement and realize that, hey, there's a lot more than just going to work and, you know, but, you know, we're not here to tell people what the right path is. We're here to help guide them as they envision their own journey. Well, and you're the financial planning expert. I wonder what you would say to. Someone, let's hypothetically say, in their sixties or their seventies, and they're going to pull a plug. They say it's time to retire, but they look at the ledger and they go, I can't afford to retire. Is there any advice for people in that situation? Absolutely. You know, you really want to make sure you're looking at things comprehensively. And there are a variety of ways to consider you know, adjustments to any sort of retirement plan at whatever age. You know, you want to make sure that you look at things like Social Security benefits and when is the most optimal time to take those based on your individual needs and income needs as well as what financial resources do you have. And some people may delay retirement if they don't feel they have quite enough. Some people may incorporate some sort of part time work to have the money to do some of the more fun things they enjoy doing. But you definitely want to look at what is a realistic path for you and understand the risks and how to balance those, to make sure that you can get where you want to go and only compromise on the things you're willing to compromise on. Lawrence, once someone does decide to retire. And now they're in retirement, do they. Still continue to stay in touch with. The advisors at Weiss, Hale and Zohansky? Absolutely. And I would say that the lead up to retirement, let's say two to three years prior to retirement as well as the first few years after retirement there's really a much higher level of engagement with us often because there's so many changes going on and so many decisions that need to be made, so many changes to where income is coming from. So it's a really critical time that we kind of lean into. How can we help ease that transition? Give them the confidence, be their partners, and make sure that they're setting their life goals and, you know, that continues well into retirement. There are changes constantly with tax policy or retirement plan rules. Could be life changes. You know, as you age, there are many health concerns. Families situations can change. So there's a lot that, you know, we're really there, as we say, you know, we're, you know, we're partners for life. And that definitely holds true because retirement is not really the end. It's. It's sort of the midpoint or even the beginning in a lot of situations. Yes. And that speaks to the new tagline you unveiled this morning and multi. Channel marketing campaign. Absolute confidence, unwavering partnership for life. Off topic a little bit. Are you going to Fenway today? You know, I wish we have some tickets to go, but it's a midday game. Those are always tough to make it, so unfortunately, I won't be there, but, you know, wish the Red Sox come back with a win and be nice to see them keep moving up in the standings. They've done amazingly well considering what they began with and then considering all the injuries they've had as well as they go for win number five in a row today. Lawrence, as we wrap things up, any final thoughts or advice for our listeners? Planning for their ideal retirement lifestyle? Well, really, the most effective way to plan for your ideal retirement lifestyle is to work with a qualified financial advisor to develop that comprehensive retirement plan that involves thoroughly analyzing your unique circumstances, goals and resources to build that customized roadmap. And the team of advisors at WAC does this by taking a very person, central, empathetic approach to listening and interacting with our clients, however and whenever they need it. And that'll help them, you know get what they want out of life in order to provide their life experience that meets their goals and encompasses that hyper personalized financial plan and investment strategy to provide ongoing confidence for them as they launch into retirement. Well, thanks for more excellent advice this morning, Lawrence. If you're seeking experience, guidance and developing a customized plan to help you maximize your retirement resources and ultimately live the lifestyle you envision, get in touch with Lawrence and the rest of the team at Weiss, Hale and Zahanski Strategic Wealth Advisors. You can request a complimentary consultation on their website at whz wealth.com or give them a call at 928-2341 Lawrence, thank you so much for joining me today and sharing your expertise on this important retirement topic. For more information regarding wealth management and customized financial planning with Weiss Hale and Zahansky Strategic Wealth Advisors, please visit whzwealth.com. Weiss Hale and Zahansky Strategic Wealth Advisors offer securities and advisory services through Commonwealth Financial network member FINRA/SIPC, a Registered Investment Advisor, fixed insurance products and services offered through CES Insurance agency. They practice at 697 Pomfret Street, Pomfret Center, Connecticut 06259 and 392-A Merrow Road, Tolland, Connecticut 06084. They can be reached at 860-928-2341 Weiss, Hale and Zahansky Strategic Wealth Advisors do not provide legal or tax advice. The tenured financial services team strives to support clients in achieving their financial life goals while providing absolute confidence and unwavering partnership for life.