Retirement planning can be overwhelming. To simplify your retirement plan and increase your odds of success, break your retirement plan down into the following three goals: portfolio, housing, and estate plan. Instead of getting lost in a complicated software program, simplify your retirement journey by focusing on simple goals at age 65 for three critical areas of your retirement plan.
Housing
Housing plays a huge role in any retirement plan. Your age 65 retirement housing goal should be to have a debt free home that is set up to provide you with many years of stress-free living. Knowing how much it will cost you to reach this retirement goal is critical to your success.
Answering the following questions can help you plan for retirement housing at age 65:
- Will you retire in your current home, or do you plan to move?
- If you move, how much do you plan to spend on your new retirement home?
- If you move, how much money are you likely to net after selling your existing house?
- How much will it cost you to prepare your house for sale?
- If you retire in your current home is the home designed for main floor living?
- If you have a two story, do you plan to climb stairs to a bedroom when you are in your 70s, 80s or 90s?
- What will you do if you can no longer climb stairs?
- Do you foresee any large expenses for your home for items like a new roof, gutters, HVAC, elevator, driveway, or remodel?
- What do you anticipate real estate taxes, insurance and any HOA fees will be like, at age 65?
- If you have a large property, who will help you with maintenance of the property and how much will that cost per year?
Portfolio
How much money do you need to have at age 65 to secure your desired retirement lifestyle? Financial advisors or retirement planning software can help you determine what your portfolio value should be at age 65. Setting an age 65 portfolio goal will give you clarity on how much money you need to accumulate to live comfortably. Once you have your number, stay focused on saving and investing to reach your goal. Track your progress. Review your finances at least four times a year and always look for ways to improve. By setting an age 65 retirement portfolio goal and monitoring your progress you are far more likely to secure the lifestyle you want.
Estate Plan
Many families put off estate planning far longer than they should. If your estate is not in good order, your beneficiaries are likely to inherit a mess. Sometimes beneficiaries end up fighting with each other because of the stress from a messy estate administration.
Your age 65 estate planning goal should be to have an updated will, updated trust, and proper ownership & beneficiary designations for all assets you hold. If you do not add beneficiary designations to your assets, transfer on death deeds or make your trust the owner of your assets, then your assets will go through probate. Updating your estate planning documents and reviewing asset ownership and beneficiaries will give you tremendous peace of mind that your estate plan is solid and your beneficiaries will avoid probate court.
Ethan S. Braid, CFA
President
HighPass Asset Management
Denver, CO