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Do you Know Your Retirement IQ?


Imagine rolling into the operating room where you are scheduled for surgery. Then, imagine being handed the scalpel and the nurse saying to you, “You’ll be operating on yourself today.” This is how millions of Americans approach retirement. The surgeon gets training and education along the way—prior to performing surgery. Yet few people get the education and guidance needed on financial matters, and then, when retiring, essentially get handed the scalpel to perform their own surgery.

So, what are some of the important details you’ll need to know? A secure retirement starts with things like saving the right amount and investing appropriately for you and your future. And just as importantly– the knowledge of how to manage your income in retirement. You’ll need to have an appropriate and tax-efficient spend-down plan. Yet, even before the money, you’ll need to consider just what you’ll do in retirement.

As you consider what you’ll do in retirement, think about time

—how much time will you have in retirement? In the beginning, you might have a notion of what you’ll be doing and how you’ll do it (financially and physically). But, what will your health and money look like on day 1,000? Do you know? And, how will you spend your time? What will you be healthy enough to do on day 3,000? While you may not have all of the answers today, taking some time to consider these questions today is part of the preparation.

Here are some important facts to help you as you begin to answer some of these questions…

Did you know that according to a recent study, the fastest growing part of our society is age 85 plus? From your mid 60’s to your mid 80’s, there are approximately 8,000 days that pass. Will your money last long enough to reach and possibly exceed those days? According to another recent study by Barron’s, the estimated amount of money an average 65 year old couple retiring this year needs is $285,000. This is to fund health-care retirement costs alone. And that is before factoring in long-term care, dental, or the premiums for Medicare for higher-income couples.

Complex as this might all sound, there’s an approach to financial advice that takes the sting (and fear) out of being handed the scalpel.

It’s an approach of gaining knowledge. One where you’re learning, all along, in doses that you can handle. Working with a knowledgeable team of professionals who listen to where you are financially, professionally and personally. This is a good place to begin. In other words, working with people who can meet you where you are.

Think of a financial planning engagement as time for you.

It’s a time to discover where you are financially in reference to retiring and/or other important goals. It’s also important in discovering how best to get there. If done right, you’ll find it’s less like getting a tooth pulled and more like going to the spa! And, you’ll feel peaceful and invigorated. It’s a time for both reflection and growth.


Important Note: The views expressed in this article are as of the date of the posting and are subject to change based on market and other conditions. This post contains certain statements that may be deemed forward-looking. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Lenity Financial, Inc. unless a client service agreement is in place.


BARRON’S April 2, 2019 – How Much Health Care Will Cost You in Retirement, According to Fidelity

The Longevity Economy by Joseph F. Coughlin – MIT AgeLab

Lenity Financial, Inc. – Retirement Important First Steps