In a recent study published by Forbes magazine, Americans as a population received a C grade in retirement readiness with only 27 percent taking into consideration how much to save for necessary expenses as well as entertainment and travel. As financial advisors, this is fortunately not an issue that most of our clients will have. While families working with a financial planner will likely have their portfolios well attended to, there are plenty of concerns that an attentive and experienced financial advisor might remind their clients to consider in the retirement years.

Debt: Debt and debt management take up most of the financial bandwidth in Americans’ lives. Bound by student loans and heavy credit card balances, many struggle to improve their credit and financial footing in order to make milestone purchases like homes or cars, let alone save for an unforeseen future. One of the golden rules we’ve established for our clients is to eliminate all debt before the retirement years. This may seem like rather basic advice, but many clients forget that this also means not taking on any debt after retirement. For instance, you may do well to remind them that purchasing that brand new car may not be in their best interest. You might ask them how much they realistically drive and if that amount justified all of the expenses that come with the purchase. Recently, one of our clients abandoned her intentions to buy a new car after being introduced to the Uber app by her family. Based on the amount she would have driven, this service met all of her needs at a much lower cost than the car she would have liked to purchase, but would have rarely used.

Longevity: No one would go as far as to reverse the improvements that technology and scientific advancement have brought to our ability to live longer. Some clients may even live much longer than they have adequately planned for. Ask your older clients to sit down and think seriously about the long term. For instance, if they are in their 70s and may reasonably live for another 20 years or perhaps even more, will they run out of money if they encounter an unforeseen disaster two decades from now? Have they considered options like longevity insurance? On a lighter note, a longer life means more time to enjoy the things you love. Will your clients have the financial freedom to golf or travel with their families if they are fortunate enough to live much longer than they expect?

Health care: Health-care cost after retirement is an area that is continually underestimated when calculating how much is enough to save. In fact, health-care costs can reach a hefty $130,000 after retirement. Unlike the general public, most individuals working with a team of financial advisors will likely not be entirely dependent on Medicare benefits. A strategic retirement plan will surely consider medical expenses and thus clients will have a greater deal of flexibility with federal benefits. Have a discussion about how they can best maximize Medicare or Social Security benefits based on their individual circumstances.

First « 1 2 » Next