Don’t Wait for Your 60s: 5 Financial Goals to Tackle Now

Don’t Wait for Your 60s: 5 Financial Goals to Tackle Now

Your 60s are a time for transition and anticipation. Retirement is on the horizon, and you’re probably dreaming of leisurely days and new adventures. And while those days may seem far off, the financial decisions you make in your 30s and 40s will lay the groundwork for a smooth transition in your later years.

Proactive planning makes it easier to adjust to the changes that come with retirement and gives you more options and flexibility down the road. By preparing early on, you can avoid potential pitfalls and ensure you’re ready to embrace the opportunities and freedoms that retirement brings. 

Here are 5 financial goals to start thinking about now (for more, listen to our podcast episode, 5 Financial Mistakes to Avoid in Your 60s):

1. Craft a Solid Retirement Plan: A well-crafted plan is your financial foundation. This involves:

  • Estimating your retirement income needs: Think about your desired lifestyle, anticipated expenses, and potential healthcare costs. Do you envision traveling the world, pursuing new hobbies, or downsizing your home? Factor these aspirations into your income projections.
  • Developing a withdrawal strategy: Determine how you’ll access your retirement savings tax-efficiently. Consider factors like required minimum distributions, tax implications of different accounts, and your overall income needs.
  • Running different retirement scenarios: Life is full of surprises. Explore various “what-if” situations, such as market downturns, unexpected health expenses, or supporting family members. This helps ensure your plan is resilient and adaptable.

2. Prepare for Healthcare Costs: Healthcare expenses can be a significant burden in retirement. Be proactive by:

  • Understanding Medicare: Familiarize yourself with the different parts of Medicare (A, B, C, and D), and choose the plan that best suits your needs and budget. Consider factors like prescription drug coverage, provider networks, and out-of-pocket costs.
  • Considering long-term care insurance: Evaluate whether long-term care insurance is appropriate for your circumstances. This type of insurance can protect your assets from the potentially high costs of long-term care services, such as nursing home care or in-home assistance.
  • Exploring other strategies: Investigate additional options like health savings accounts (HSAs), which offer tax-advantaged savings for healthcare expenses, or life insurance policies with long-term care riders, which can provide funds for long-term care needs.

3. Develop a Strategy to Protect Your Assets: As you approach retirement, it’s time to shift your focus from accumulating wealth to preserving it. Key strategies include:

  • Diversification: Spread your investments across different asset classes, such as stocks, bonds, and real estate, to reduce risk and potentially increase returns.   
  • Risk management: Adjust your portfolio to a level of risk that aligns with your retirement timeline and goals. As you get closer to retirement, you may want to reduce your exposure to riskier investments to protect your nest egg.
  • Income generation: Develop a strategy to generate reliable income from your investments while protecting your principal. This might involve dividend-paying stocks, bonds, or annuities.

4. Plan for Longevity: People are living longer than ever, which is great news! But it also means you’ll need to plan for a potentially long retirement.

  • Ensure sufficient savings: Make sure you have enough saved to support your desired lifestyle throughout your retirement years. Consider factors like inflation, potential healthcare costs, and your desired level of spending.
  • Consider longevity risk: Explore strategies to manage the risk of outliving your retirement savings. Options include annuities, which provide guaranteed income for life, or other guaranteed lifetime income products.

5. Create a Comprehensive Estate Plan: A comprehensive estate plan is essential to protect your legacy and ensure your wishes are carried out. This includes:

  • Creating or updating your will: Clearly outline how you want your assets distributed after your passing. This includes specifying beneficiaries, guardians for minor children, and any charitable donations.
  • Establishing a trust (if needed): Consider a trust to minimize estate taxes, protect your assets from creditors, or provide for loved ones with special needs.
  • Reviewing beneficiary designations: Make sure your beneficiary information is up-to-date on all your retirement accounts and insurance policies. This ensures that your assets are distributed according to your wishes.

Take Action Today

Start planning for a secure and fulfilling retirement today. Schedule a free consultation to discuss your goals and develop a personalized plan. Your future self will thank you!

If you’d like to learn more, check out our podcast episode, 5 Financial Mistakes to Avoid in Your 60s for an in-depth discussion on these important financial goals and how to achieve them.