Like all types of health, financial health is important at any age, but how you achieve it can change as the years go by. That’s why Cobblestone has created a series of articles with our best financial advice, decade by decade. In case you missed them, our first installment focused on financial health in your 20s and 30s, our second focused on financial health in your 40s, and our third focused on financial health in your 50s and 60s.
Congratulations! You’re finally able to kick your feet up and enjoy the fruits of a lifetime of hard work. This list of nine tips can help you make sure the nest egg you’ve worked so hard to create will keep you safe and secure as long as you need it to.
The first thing you’ll want to do is compile a list of any assets and liabilities to create a net worth statement like those found here. This will give you a clear picture of your financial situation and help you to identify consolidation opportunities like rolling an old 401(k) into an IRA or combining unnecessary checking/savings accounts with your main account to simplify your financial life.
Here’s a quick overview of some types of accounts and their tax impacts:
A good budget can help you review your expenditures to understand what your expense needs are. If monthly expenses exceed available income streams, you should explore ways to cut costs.
After age 70.5 IRA account owners are eligible to make tax-free distributions directly to charity from their accounts. This is known as a Qualified Charitable Distribution (QCD). This kind of charitable gift is included toward your RMD, so it can reduce the tax impact of your required distribution. It’s also a great way to take advantage of charitable contribution tax savings if you’re a taxpayer that doesn’t itemize.
Your personal healthcare coverage needs can vary widely and will most likely change throughout your retirement years. Because of this, you should review your Medicare coverage annually to determine the impact that plan changes will have on your situation and determine if current coverage is still adequate, especially if your health has changed over the previous year. You have the option to change plans if needed during the annual open enrollment period.
Continue to review your estate plan documents throughout retirement to ensure that it still meets your needs as time passes. You should also regularly review your beneficiary designations on IRA and 401(k) accounts, transfer on death accounts, and life insurance policies. Since these accounts pass according to beneficiary designations and not your will or revocable trust documents, take a look at them to confirm that they are in line with your overall plan.
There are many scammers using many tactics to trick people as they age – and they continue to become more sophisticated in their attempts. Here are a few rules to keep in mind:
You’ve spent a lifetime building a great life for your family. Be sure to take the time to relax and enjoy, spend time with family, travel to new places, or take up that hobby you’ve never had time for.
This is the fourth and final installment in our Financial Health at Any Age series. Be sure to go back and read any articles you may have missed and, as always, we’ll be here for any additional financial information or guidance you may need.
Registration with the SEC should not be construed as an endorsement or an indicator of investment skill, acumen, or experience. Investments in securities are not insured, protected, or guaranteed and may result in loss of income and/or principal. Nothing in this communication is intended to be or should be construed as individualized investment advice. All content is of a general nature and solely for educational, informational, and illustrative purposes.