Subscribe
Share
Share
Embed
Bradford Financial Center, a national wealth management company, delivers a financial advisor's simple approach to making small changes that can result in big results for your financial future. From budgeting, tax planning, and saving for retirement to college planning, smarter insurance solutions, and building wealth, the practical advice is easy to apply for investors at any level.
All episodes include a "Five in Five" segment where we break down quick-hit financial trends for their listeners.
0:00:01.7 Speaker 1: Welcome to the Bradford Financial Center podcast on post-retirement, where your wealth journey is always at the top of our ongoing financial planning goals.
0:00:14.6 Shallon Weis: Hello and welcome to the Bradford Financial Center: Small Changes Can Turn Into Big Results podcast. We are your host and part of the Certified Financial Planning Team at Bradford. I'm Shallon Weis, and we have Jim Tausz. And over the last few episodes, we've been discussing retirement planning and that journey from pre-retirement planning, that phase when you're in your 20s up to your retirement day is to the day of your retirement exit, maybe in your 50s and early 60s, and now post-retirement. So it pays to discuss what post-retirement looks like and the things you should be aware of far ahead of retiring. I like to think of this stage of retirement as a phase where anything can happen and how being a bit of a risk manager can be a smart skill. So we'll dive into that in today's episode, but be sure to stick around for our Five in Five segment in the last five minutes of our podcast to get our five reasons communicating your retirement plans matter. So Jim, let's jump right in today. So in a survey Bradford Financial Center conducted with our email recipients and social media users last year, we learned that of the people surveyed, retirement is one of the biggest concerns when it comes to personal finances.
0:01:22.0 SW: 32% cited the tax implications of investing and reducing the tax liability as the greatest concern, while others, about 12%, they worry about that unique equation of calculating how much they need to retire and last through retirement. Is this undue anxiety, Jim? Do you feel like the economic and political situations rightly weight on people in retirement today?
0:01:46.1 Jim Tausz: Things like inflation, rising health care costs out there, unforeseen life changes, are all concerns to any retiree. Healthcare is one of the actual biggest expenses that you'll face at retirement, and that's a statistic we all are aware of, but we need to do something about it. According to The Bureau of Labor Statistics' Consumer Expenditure Survey, the healthcare for those at age 55 to 64 costs about $5800 in 2020, it's up to $6700, and for those age 65 and over, wow. So hang on to your hat, because what you're gonna see in your retirement is it's gonna go up and up, and up.
0:02:29.5 SW: Yeah, and those things certainly can cause anxiety. I think too, for some, it's the stress of making the most of the second half of your life, and that feels unsettling. Now, for instance, the transition to retirement means that you have a lack of daily routine that you once had in your job. So the hustle of getting ahead might abruptly stop, and that can leave some lacking daily purpose their career once provided. So these are important things and emotions to explore before you retire, and a smart topic to discuss.
0:02:57.6 JT: It's true, Shallon. Not everyone wants to take up golf or have a hobby. That's known, all you have to do is look at your own families and you see that. Some do return to part-time jobs because of these things. As financial planners, we have many times become life counsellors for our clients. This is a reality of retirement that is really worth talking about. And Shallon says, because we're setting expectations for your retirement are important for your long-term happiness, then we better do something with it. Let's address other things that suddenly shift in retirement, like income. When you retire, you often draw less income than what you had when you worked, an adjusting to the new spending limitations can be a tough job, or a retirement budget can be tough in itself because you're not used to working with that. Decisions that you make with your money or withdrawals that you take don't have to buffer anything considerable and concerning if continuing income is earning and you're doing well with that earnings, then things might be working for you. And you don't have to benefit sometimes from recovering from any market losses either because you make plans for that. Thus, post-retirement planning can be very complex as you will see by these five things.
0:04:26.0 JT: Because you go from one working and earning paycheck and saving to worrying if you are going to outlive that income, what you have saved, is it going to be enough? That's the question. During retirement, no one is adding to your 401K anymore, are they? And it is just because the market is really on a growth cycle, that can maybe make a difference in your retirement, but it isn't always that way either. It can be very emotional. However, here at the Bradford, we have helped thousands of clients retire over our 50-plus years. We can get to know you and your financial situation, and we can be alongside of you and help guide you through these changes, because we care. We can be your shepherd. Don't let that shepherd be alone. We are waiting for you.
0:05:18.2 SW: These are all important post-retirement considerations to think of and plan for it now. Now, post-retirement planning is complicated due the fact that the distribution of assets can have a lot more moving parts and factors to take into account. So if you're in retirement now and need a financial plan to help you with withdrawals, tax planning and investing during retirement, reach out to Bradford Financial Center. Now, our financial advisory team helps clients in all phases of retirement planning, and we're experienced and trusted in our approach, and we've been successful at managing wealth journeys for over 50-years. So now let's jump right into our Five in Five segment. And today we're going to keep our focus on retirement and outline for our listeners five reasons communicating your retirement plan to others matters.
0:06:01.2 JT: It's been interesting how over the years, more importance has been placed on this topic, for sure. Retirement, estate plans as well as money issues for too long were a hush-hush with many families. Maybe you remember some in your family that went through this. I personally think that it's a bad idea to keep these manners under wraps. We've got the five reasons why we do feel this way. For example, let me start with number one. It helps families plan for their futures. Obviously, we always believe that you and your spouse should be on the same page, if at all possible with your retirement plans. And here's where referring to your children and also close family members might impact your decisions. I don't think that you have to share specific numbers with any family member, but it's helpful to them to know what things are like in your life. When you plan to retire, for example, and if your spouse will retire at the same time for example, also goals and dreams that you once had decided to do once you do retire. Are you now available as a daycare provider for your grandkids? You might ask yourself those questions. Or do you need to be clear that you are traveling more and want to be more free and more time to do the hobbies that you've always wanted to do?
0:07:19.0 JT: This is really an important expectation to set with a family, or consider your attentions with the cherish places or assets. For instance, if you plan to sell a family farm, or a lake home, or an antique boat when you retire, that's good to let your family know before it does happen. Communicating these goals to your loved ones help them plan for what the future might look like for you. If you're going to be away or if other things will change, like family vacations, let everyone be in the know.
0:07:51.7 SW: Yeah, and the second thing is they can prepare for tax implications. If gifting of any part of your estate is part of your plan, family should be made aware ahead of time, or if certain milestones must be achieved before those involved in the trust should be informed so they can manage expectations and tax implications of your gift.
0:08:08.4 JT: Third, convey your wishes. Most family members want to do what they can to assure that your wishes are met, but they don't know what it looks like unless you openly communicate those things with them. "Don't you want to donate a portion of your estate, for example, to a specified charitable organization," you might ask. Do you want to have a scholarship or a foundation created that family member might have to manage? Or as it relates to your health and future care, can you give your family peace of mind knowing that you have a plan for long-term care plan and it's in place and ready to use if the situation come up?
0:08:47.1 SW: And number four, it helps them understand their responsibilities. You can avoid hurt feelings or surprises when you share ahead of time your expectations for how and where they are needed. So if you have signed a child or family member as executor of your will, you should let everyone know. If one is expected to be the point of contact for you or your medical power of attorney, tell them now. Now, this should include important items, like how to access a safety deposit box and what's in it, know important passwords or policy numbers and where they're kept, what's in the safe and how to get into that.
0:09:19.9 JT: Out of the five reason, number five, give them the points of contact when they most are gonna need it. In your communication plan, we highly recommend introducing your children whether in-person or in a virtual call to the financial team that you put around you. Help them understand who is managing your money, the products and the plans that your money are in. They also need to know who they can contact for financial health and also legal discussions and so on that need to be done at critical moments. This is a good time to recommend children that will inherit the money that they should prepare themselves to receive it. Beneficiaries need to prepare commingling two estates or their own estate and the family estate. They all have to be dealt with and also disinheritance needs to be decided what is going to take place for sure. So when you need to pull a retirement plan together, or need help facilitating a meeting to share your retirement plan with family members, Bradford Financial advisory team is ready and experienced to help you. We are here for you. You need to come in and we will help you get this done, I promise.
0:10:31.1 SW: You can find us on bradfordfinancialcenter.com, or you can find us on Facebook and Instagram. And our address is 215 North Main in Clarion, Iowa 50525, and our phone number is 515-532-6661, or for our 800 number is 1800-348-4419.
[music]
0:10:51.8 S1: Thank you all for tuning in to your wealth journey podcast, powered by Bradford Financial Center. Be sure to tune into our next episode. We'll explore smart strategies you need to know.
0:11:03.7 S1: Securities offered through United Planners Financial Services, Member FINRA SIPC. Advisory services are offered through Bradford Financial Center, a Registered Investment Advisor. Insurance Services offered through Bradford Insurance. Tax and Accounting Services offered through Bradford Tax & Accounting Network. Bradford Financial Center, Bradford Insurance and Bradford Tax & Accounting Network are not affiliated with United Planners. Neither Bradford Financial Center nor United Planners provide tax or legal advice.
0:11:29.2 S1: This podcast is for general information and educational purposes only, and not intended to be specific advice for any individual. Consult your financial professional regarding your personal situation. All investing involves risk and there is no guarantee that any strategy will be successful.