Retirement Planning Does Not Stop in Retirement

Five easy pointers to help you plan during all your retirement years

If you’re retired, you enjoy the good news that you’ll probably live longer and perhaps better than your parents and grandparents did. The bad news: You’ll live a longer and perhaps a more expensive life. You face decisions your parents or grandparents likely didn’t meet before you.

This means every year you need to realistically estimate your life expectancy to ensure the foundation for your retirement (which might include years of less-than-great-health). Let’s say you are 58 – you need to plan for the next 37 years – more than a third of your life.

Pointers to Help Plan During Retirement

Here are five easy pointers, in ascending order of importance:

1. Costs of advice. You probably have a lot of questions. How much do you pay someone now to help manage your investments? How much do your investments cost?

Is your portfolio sufficiently diversified? Did you buy annuity policies you don’t really understand and that may become expensive for you to own? Do you need someone to only manage your investments or to also provide financial planning advice?

The average American spends more time analyzing the cost of a new TV than the costs and qualities of a financial advisor.

2. Social Security. Don’t decide about benefits and lump-sum pension choices without input from an objective financial planner – or you may leave significant money behind. Remember that the Social Security Administration won’t necessarily provide advice on your best strategies.
3. Your home and future health. Consider the final 15-plus years of your life. Where will you live when you’re 80?

In a large home with stairs? Will most of the wealth center around your home as your retirement years tick past? Who will care for you if you can’t yourself? (Don’t plan on a spouse, as you may become a widow or widower).

4. Know what you own. Are you one of the tens of thousands with half-forgotten old 401(k) plans from previous employers? Have multiple accounts with various brokers? Outdated estate documents or long-forgotten life insurance policies?

Consolidate your holdings and paper trail, a kindness not only to your current recordkeeping but also to your future heirs.

5. Make your wants clear. Include your adult children or siblings in a frank discussion about where your assets are and your preferences for treatment if you end up in the hospital.

You don’t need to give specific dollar information, but family or friends need to know your preferences and where to find your assets if you die or can no longer communicate.

Talk to a financial professional to make sure your retirement planning is not left to chance.

At Popular, we are here to guide you in preparing for retirement. If you want to start or review your retirement strategy, contact Popular’s Retirement Center at: educacionretiro@popular.com.

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The Retirement Center services may entail a cost. The information and general descriptions in this article are designed to help you understand some of the factors you should consider when evaluating the appropriateness of any strategy or investment within your retirement plan. Any description included is only for informational and educational purposes and for your independent consideration; it is not to be regarded or viewed as advice or as a suggestion to take (or refrain from taking) any particular action. By providing this information, we assume that you can evaluate it, as well as the general descriptions found here to exercise your independent judgment. Banco Popular de Puerto Rico, its subsidiaries and/or affiliates are not engaged in rendering legal, accounting or tax advice services. If legal, accounting, or tax advice services are required, you should seek the services of a competent professional. Insurance and investment products are not insured by the FDIC; they are not deposits or obligations of, nor are they guaranteed by Banco Popular, its subsidiaries and/or affiliates. Investment products may lose value. Some insurance products may lose their value.