Financial Planning and Retirement

Four Quick Financial Tips for Retirement

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    • Barbara Rizvi, CFP®

      Director, Financial Planning
      Apr 04 2018

Article | Read time: 3.5 minutes


It's never too early to start planning for retirement. Even if retirement is years off, having a solid financial plan will help you make the most of your golden years. You may say to yourself, “I have a 401(k) retirement plan, so I’m covered, right?” Having a 401(k) is a great and convenient way to save for retirement, but there are additional steps you can take to prepare. I recommend trying these four financial retirement tips.

1. Budget for out of pocket medical expenses.
Many retirees are not prepared for the significant financial impact a long-term care event can have on their financial well-being. Even with insurance, medical expenses can add up, so it’s important to factor any extraneous medical expenses for you or your family into your budget. When saving for potential medical expenses, keep your savings accessible in case of emergency. Even though it may be tempting to use this money for other expenses, it’s a good practice not use these funds for anything other than medical costs. Doing your best to stay healthy may also reduce your chances of needing to use these funds. It’s important to exercise regularly, eat a balanced diet and stay up to date on preventative care.

2. Review your goals and portfolio.
Do this on an annual basis with a qualified, trusted financial planner. During this meeting, ask your financial planner if you are still on track to meet your retirement goals and let him or her know of any changes you wish to make. Your financial planner will then help you make adjustments to your financial plan and investment strategy.

3. Have a well-diversified portfolio.
Because we can never be sure of what is going to happen with the market, it’s important to have a well-diversified portfolio, which is one of the best ways to mitigate against market corrections. Diversification is more than an equity/fixed income ratio. A well-structured portfolio will also be diversified amongst asset classes, sectors and income tax status. I recommend talking to your financial planner about your portfolio and asking about a diversification strategy.

4. Refrain from tapping into your social security.
The age you decide to start collecting social security will have a direct impact on how much you will receive each month. The longer you delay dipping into social security funds, the larger the benefit. Try and hold off on cashing in on your social security for as long as feasible. To see the impact a few years will make on your social security benefits, try using AARP’s social security benefits calculator to see how much social security you’ll receive at different claiming ages.

There are numerous small things you can do each day to better prepare for retirement, whether it be sticking to a monthly budget, having a regular savings goal or contributing to your employer’s 401(k) plan each paycheck. If you’re looking for additional tips on how to save for retirement, talk to your financial planner about your retirement goals.

First National Bank Wealth Management provides trusted guidance tailored to meet the specific needs of our clients. We believe planning doesn’t need to be tedious – we help make it manageable so you feel confident in the process and in your resulting plan. Your situation is unique and your plan should be too. Our planning professionals work closely with you to uncover personal goals and concerns, identify resources, and provide recommendations to build a plan that is uniquely yours. Learn more about our planning services.

About the Author
Barbara is a Senior Financial Planner with the Private Client Advisory and Financial Planning teams at First National Bank Wealth Management. She specializes in providing comprehensive and personalized financial planning that incorporates investment, retirement, tax, protection and estate planning strategies. Barbara earned her Bachelor of Business Administration in Finance from Texas Christian University. She spent 20 years of her career in corporate finance before deciding to pursue a more rewarding path of financial planning for individuals. Barbara is a CERTIFIED FINANCIAL PLANNER™ and a Chartered Financial Consultant (ChFC®). In addition, she is actively involved with the Financial Planning Association of Nebraska and is currently serving as President.

This material does not constitute legal, tax, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material.