Are You Prepared for the Unexpected in Retirement?
When Kristin recently told the story of a stressful experience going through airport security with our son, something stood out to me. The people at the airport were prepared for what normally happens. They were not nearly as prepared when something outside the ordinary happened.
That sounds a lot like retirement.
During your working years, life can feel fairly predictable financially. You get a paycheck. You contribute to your retirement accounts. Maybe your employer matches some of those contributions. If the market drops, you keep putting money in and give it time to recover.
Then you retire, and suddenly you are playing a different game.
The paycheck may stop. The company match disappears. Instead of adding money to your accounts, you may be taking money out. And now a market downturn, unexpected tax bill, healthcare expense, or change in your income needs can have a much bigger impact.
Why Should You Prepare for the Unexpected in Retirement?
Because retirement could last 20, 25, or even 30 years, and a lot can change during that time.
You cannot predict every market downturn, tax law change, healthcare expense, or family situation. I do not think the goal of retirement planning is to predict everything that will happen.
The goal is to have a plan that can respond when something does happen.
I want the families we work with to understand where their income will come from, how much risk they are taking, what taxes could look like, and what adjustments may be available when life changes.
That is what preparation is really about.
A Retirement Plan Should Be Able to Change
A good retirement plan is not something you create, put in a drawer, and forget about.
Life changes. Markets change. Tax laws change. Your spending changes. Your health can change. Your priorities may change.
Your retirement plan should be built with enough flexibility to change along with you.
You may not know exactly what is waiting around the corner. None of us do. But when you have a written retirement plan and understand the options available to you, the unexpected does not necessarily have to become a financial emergency.
That is one of the biggest reasons I believe planning becomes so important as you approach retirement.
You cannot prepare for every surprise.
But you can prepare yourself to handle one.
If you would like a second opinion on your retirement strategy and whether you are prepared for what may come next, give our team at Legacy Retirement Group a call at 614 336 7660. We would be happy to sit down with you and help you see where you stand.