June is Men’s Health Month – a time to raise awareness and address men’s overall health. Most people are aware of the importance of physical and mental health, but one area you may be overlooking is financial health. Living a healthy and prosperous life does not stop at monitoring one’s physical and mental health, it is also essential to monitor your financial health. This is why we created a retirement checklist to help keep you on the right track and stay aligned with your retirement goals.
What is a Retirement Health Check?
A retirement health check is a comprehensive review of your financial readiness for retirement. It involves evaluating your retirement savings, income sources, healthcare coverage, debt management, long-term care plans, estate planning, and investment strategies. Regular assessments help ensure you are on track to meet your retirement goals and can adjust your plans as needed to secure a comfortable and financially stable retirement.
Understanding a retirement health check is important to ensuring you are on the right path. Now, let’s dive deeper into the Kowal Investment Group’s 7-point Retirement Health Check that can help you evaluate your readiness to retire, or understand if you need to adjust any part of your plan.
7-point Retirement Health Check
1. Evaluate Retirement Savings: The first step in a retirement health check is assessing your savings. Review your current savings, both emergency and retirement. Look at your ongoing 401k contribution and consider increasing it by 1% annually. Review the allocation between pre- and post-tax. Schedule a retirement review with one of our fiduciary advisors to evaluate whether your savings are on track or if adjustments are needed to meet your retirement goals.
2. Review Retirement Income Sources: Consider all potential sources of retirement income, including pensions, Social Security benefits, and investment returns. Evaluate the reliability and sufficiency of these income streams to meet your financial needs during retirement. At Kowal Investment Group, we help our clients review retirement income sources, explore any potential gaps and consider strategies to bridge them, such as optimizing investments or exploring additional income sources.
3. Assess Healthcare Coverage: Healthcare costs can be a significant expense during retirement. Review your healthcare coverage, including Medicare or any private insurance plans, to ensure they align with your needs and budget. Our fiduciary advisors are here to help evaluate potential gaps in coverage and consider supplemental plans or savings accounts to cover unexpected medical expenses.
4. Debt Management: Assess your debt situation and determine whether it may hinder your retirement plans. High-interest debts, such as credit card balances or loans, can erode your savings and limit financial flexibility. Develop a plan to pay down debts, prioritizing those with the highest interest rates.
5. Long-Term Care Considerations: Long-term care is an important aspect of retirement planning as there is a 70% chance a person age 65 or older will need some type of long-term care. At Kowal Investment Group, we work with our clients to evaluate options for long-term care insurance and other strategies to cover potential costs associated with assisted living, nursing homes, or in-home care.
6. Estate Planning and Legacy Goals: Review your estate plan, including wills, trusts, and beneficiary designations, to ensure they reflect your current wishes and financial situation. If you do not already have an estate planning attorney, our team is happy to recommend one. Working with an estate planning attorney and one of our financial advisors will help you to maximize the efficiency of your plan, minimize tax implications, and ensure a smooth transfer of assets to your heirs or charitable causes.
7. Revisit Investment Strategies: Schedule a retirement review with one of our fiduciary advisors to ensure your investment portfolio is aligned with your retirement goals and risk tolerance. We will work together to ensure your asset allocation is appropriate for you, balancing growth potential with stability. Working with a financial advisor at Kowal Investment Group will help you optimize your investment strategies and ensure they align with your long-term retirement goals.
Retirement Health Check with Kowal Investment Group
This June, as you focus on Men’s Health, don’t forget about financial health as a key component of your overall health. A retirement health check is a vital step in maintaining financial health and achieving financial security. By regularly evaluating each of these points and working with one of our fiduciary advisors, you can make informed decisions and take proactive steps toward a successful retirement.
Schedule your no-obligation retirement review today!
Disclosures:
This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of Kowal Investment Group, we do not render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
Kowal Investment Group, LLC (“Kowal”) is a Registered Investment Advisor. Kowal will maintain all applicable registration and licenses as required by the various states in which Kowal conducts business, as applicable. Kowal does not provide legal, accounting, or tax advice. Consult your attorney or tax professional. Representatives have a general knowledge of the Social Security tenets. For complete details on your situation, contact the Social Security Administration.
Source:
https://acl.gov/ltc/basic-needs/how-much-care-will-you-need
