Planning for retirement really does require a look at your finances.
“People think they are going to spend less in retirement, and it doesn’t work that way,” said Pete Eckerline, managing director-financial advisor at RBC Wealth Management.
He says there are some real money pits you may not realize, starting with health care costs.
“Your health care costs go up quite a bit,” Eckerline noted.
You won’t be working, so your employer won’t be pitching in, so you may choose Medicare, which comes with costs.
Then there are things like trips, social outings, and spending money on your children and grandchildren.
“It’s important to get your hands around it and make sure you have the assets to support it,” said Eckerline.
He says it’s important to seek advice now, instead of when it’s time to retire.
“Talking to a professional is the best thing; they can help you drill down what your goals are and how we can achieve them.”
A professional can help you in planning what funds you’ll pull from and at what age — often the longer you wait to tap into certain funds, like social security, the bigger the benefit.
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