While your work life may start to wind down once you hit 60+, your need for sound financial planning does not. To live your golden years with confidence, you need to know that your finances are optimized to ensure you can continue to enjoy life to the fullest.
If you feel you’ve done a great job managing your finances up to now, this is not the time to take your hand off the wheel. On the other hand, if you worry that you’ve been neglectful in managing your money up to now, you should take heart that it’s never too late to take corrective action.
Whatever your situation, financial planning remains an important part of life in your 60s, 70s and beyond. In this article, we highlight some steps that you can take to ensure the sun continues to shine brightly in your later years.
Boost your investment performance
If you’re already retired, you may not have the opportunity to boost your savings with new sources of income. What you can do, however, is take steps to boost the performance of your existing investments.
High fees can take a big bite out of your investment returns. While high-fee mutual funds may have been the norm back when you started building your retirement nest egg decades ago, today low-fee alternatives abound. By assessing your portfolio to identify high-fee investments and replacing these with low-fee products like exchange-traded funds (ETFs), you may be able to give your returns a boost while maintaining the same risk profile.
Reduce your tax bill
From senior discounts to loving grandchildren, there are many perks to growing older. Unfortunately, a free pass on taxes isn’t one of them. Although retirement may significantly reduce your income tax bill, chances are you will still owe the tax collector a good sum each year.
Fortunately, there are many options for tax-optimized investments and tax-minimization strategies that can reduce your annual tax bill. Just because you may be paying less tax now than you were in your younger years doesn’t mean you should be paying more than necessary.
Optimize your insurance
From covering your expenses in the case of illness to ensuring a financial safety net for loved ones after you die, insurance can serve valuable purposes throughout your golden years and beyond. In the case of permanent insurance, it can also serve as a versatile fixed-income asset to help balance risk in your investment portfolio.
As you grow older and face potential health complications, your access to new insurance products may change. No matter what your age, however, there are often options for optimizing your coverage. Whatever your objective – from obtaining long-term care insurance for extra support should you one day need it to boosting your life insurance to grow your nest egg and leave more behind for your beneficiaries – it’s not too late to take advantage of insurance solutions.
Keep your will up to date
Financial planning remains important at 60+ not only to make your golden years the best they can be, but also to optimize your estate for the benefit of the next generation. And since life doesn’t stop once you retire, your wishes for how to structure your estate may similarly continue to evolve as the years go by.
Maintaining an up-to-date will is your chance to have an impact beyond your lifetime by deciding on the distribution of your hard-earned wealth. Whether that’s providing for the well-being of loved ones, passing on a cherished family cottage, supporting causes dear to your heart or all of the above, what’s important is that you decide.
Whatever your personal financial situation – whether you’re stressed out about making ends meet or sailing along worry free – one of the most important steps that you can take is to gain clarity on your financial situation. This is true at any age, including in your 60s and beyond.
Without a clear understanding of your financial position and outlook, you’re putting yourself at risk of unpleasant surprises. Knowing where you stand can provide peace of mind and, if necessary, spur the action needed to improve your financial circumstances, no matter what your age.
At Rubach Wealth, we help our clients navigate the lifelong journey of financial planning with confidence. Life doesn’t come to a standstill once you reach your 60s, and neither does your opportunity to make smart financial decisions. If you would like assistance optimizing your wealth so you can get the most out of your golden years, contact us at (647) 349-7070 to discuss how we can help.