Purposeful Retirement Workbook & Planner. Hyrum W. Smith

Purposeful Retirement Workbook & Planner - Hyrum W. Smith


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way to reduce the fear of living on a fixed income is to thoroughly plan. If you prefer, work with a retirement advisor to map out what your new budget may look like in retirement.

      You may want to consider three basic elements:

      •Needs

      •Wants

      •A Rainy Day Buffer

      What those elements look like in a “normal” month will be different for everyone. A financial advisor should be able to examine your personal situation and provide recommendations.

      NEEDS

      Fear comes from the fact that you don’t know what you don’t know—until it’s too late. So if you want to do some independent planning before you speak with a financial advisor, here are some thoughts:

      •Housing. If you do not own your own home, you still have a mortgage to take care of every month. Remember to also include utilities (gas, electric, cable, internet, garbage, recycling, etc.) in this expense category.

      •Medical Insurance. Depending on what type of medical insurance you have acquired for your retirement, chances are that you are still going to have to pay a monthly premium. Find out how much it is and do yourself a favor—plan for it to go higher.

      •Additional doctor’s visits. You’ll need to plan for dentists visits and eye doctor visits.

      •Taxes. This is a topic you want to discuss with a financial planner. How much should you expect to pay in taxes and is there any way to keep that amount as small as possible.

      • Food! Food is a subject that can easily go in the Needs & Wants category. For now, think about how much you plan to spend for basic groceries. Fun nights out with friends at a restaurant can be addressed in the Wants category

      List other needs that you should consider:

      WANT

      Time for fun.

      This category is completely up to you. Fill it up by declaring to yourself, “I’ve waited decades to retire so that I could finally have time to _______________.”

      Now, if you thought about a work project around the house, try again!

      What would your retirement not be complete without?

      And how much do you have to save to pay for it?

      •Travel

      •Weekly lunches with friends

      •Extensive family visits

      •Golf outings

      •Spa memberships

      •Deep sea fishing trips

      •Season tickets to the theater or for your favorite sports team

      •Cruises to exotic places

      RAINY DAY BUFFER

      What are those unavoidable expenses that inevitably pop up when least expected?

      •Prescriptions. No matter your prescription drug plan, plan to have to pay for some things in the future out of pocket.

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