Are you recently retired or nearing retirement? If so, you may believe that a financial plan isn’t necessary at this stage of life. After all, retirement planning is a major component in most financial plans. If you’ve already achieved your retirement goals, do you still need a plan?
The truth is that retirement planning is just one piece of a comprehensive financial plan. Even after you retire, you will still have other financial objectives, challenges, and needs. You’ll need to make your retirement assets last through your lifetime. You may have legacy goals on how your estate is distributed after your death. You will likely face health care costs and other financial risks. A comprehensive financial plan can help you tackle these issues.
Today’s retirees face an unprecedented level of financial risks. People are living longer than ever, stretching the amount of time that one’s retirement savings must last. Health care and long-term care costs continue to rise, placing added financial pressure on older Americans. Volatility in the investment markets can threaten your financial stability in retirement.
There’s one other financial risk that you may not have considered. It’s inflation, which is the incremental increase in the price of goods and services from year to year. Inflation is caused by a wide range of factors, including interest rates, economic growth and much more.