David Lerner Associates News

How to Plan for Financial Stability During Retirement

Core Facts

Main Article Image

Wednesday, May 11, 2022

The goal of retirement is to enjoy the fruits of your labor. You’ve worked for probably 40-plus years and plan to take it easy for the remainder of your life. However, without careful planning, this could turn out to be quite a challenge.

Working through these tasks will help you maintain financial stability when you retire:

Making the money last. Life expectancy continues to rise. Can you afford to stay in retirement if you live to your 80s, 90s, or beyond? This is an important question that requires careful thought and planning. You may want to consult a financial advisor for a variety of tactics you can use to make your money last.

Make a list of your retirement goals. What do you plan to achieve once you’re done working?  Of course, this is different for everyone, but it’s important to decide on the major goals you would not want to give up. For some, it may be traveling, but for others, it might be providing your grandchildren with a college education.

“A list of your retirement goals can help you figure out how to stay financially stable,” says Darren Nomberg, Senior Vice-President, Investments for David Lerner Associates. “Figure out how to safely work each goal into your financial plan based on the money you’ve saved up and the funds you still have coming in”

Make a list of retirement essentials. These are housing, food, medications, and other necessary costs. All of these are tied to your financial stability. Will you stay in your present home or move to a more affordable space or location? Will your home be paid off by retirement?

Healthcare costs.  According to the Fidelity Retiree Health Care Cost Estimate, in 2021 an average retired couple age 65 would have needed approximately $300,000 saved (after tax) to cover health care expenses in retirement.   Another recent study from Employee Benefits Research Institute revealed that out-of-pocket health care costs in retirement have increased significantly in the last year. Your financial advisor can help you better understand your unique challenges and how to address them in the context of your retirement goals.

Combine the lists and start calculating. Include all your costs from your lists of essentials and goals to come up with a budget. It’s important to estimate correctly and consider emergency situations.

Sound investing. Work with your advisor to create a plan to invest your savings in a way that provides maximum growth and minimum risk

Medicare and Social Security. With rapid inflation expected to last for the next couple of years, it’s unwise to rely on these resources. Investigate all your options and see how much you’d get if you take Social Security at different ages.

Retirement can be one of the best phases of your life. Work diligently through these steps so that you can remain financially stable. That way you’ll avoid having to make difficult money decisions and you’ll be able to enjoy your retirement years.





Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.


Number of views (86)

^ Top


Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 800-367-3000 Visit our website: www.davidlerner.com

^ Top

  • Connect With Us