Charting a Path for Your Life in Retirement

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Charting a Path for Your Life in Retirement

Your retirement, like the rest of your life, will be unique, but with the right preparation you can make a plan for it

By: Chad Germain, Financial Advisor, M&T Securities, Inc.

Entering retirement is a profound life change. Some people have a plan, while others only start thinking about what they want from this chapter of their lives after it’s begun. No matter which group you’re in, it’s important to consider a few things to make sure that you can afford the lifestyle you ultimately decide you want in retirement.

A map for a changing landscape
Retirement can be emotional, which is why it’s important not to make any hasty financial decisions right after you retire. At the same time, since people are living longer, you want to make sure that any new investments or purchases fit your long-term plan.

In retirement, you may find that you have much more free time to fill than before. That’s why many new retirees overspend in those early years, traveling, taking on new hobbies and activities, and just generally splurging. But over time, you may begin to slow down. You can anticipate this in your retirement spending plan by allocating more money to spend early on and less later.

But getting older doesn’t necessarily reduce all your costs. As an example, your medical bills will likely rise, particularly if you have a chronic condition or if you become seriously ill. This could derail your retirement plans, which is why you should think carefully about your health insurance coverage—specifically long-term-care insurance—as part of your overall financial plan in retirement.

You may also encounter financial hurdles you might not expect to follow you into retirement, such as taxes. If you withdraw from your 401(k) plan and/or traditional IRA account for any reason, you will be required to pay income tax on that money. Bear in mind that you will be legally required to begin withdrawing funds from your IRA and 401(k) accounts after a certain age, even if you don’t necessarily need the money.

A plan as unique as you
You may be looking at retirement as a time to do more of the things you love most—travel, hobbies, spending time with family, or working with your community. Perhaps you want some of those beloved interests to extend to what you hope to leave behind.

You, like others, may be jokingly thinking “I want to bounce my last check.” But you likely want to ensure that you leave a legacy for your children, a charity, or an institution that matters to you. At M&T Securities, we can work with you to make sure your plan can provide income in retirement, while preserving your assets, even in the event of a major health event.

No matter what you want from your retirement and what you hope to achieve with your savings, making it a reality starts with a plan. We can advise you as you prepare for retirement, helping you understand what your income and expenses will be.

From there, we make sure you have the right mix of investments, insurance, and other financial vehicles that can help provide you with the life you want in retirement, while meeting other goals you may have for the future.

Financial Advisor Chad Germain specializes in providing education and guidance to help families feel comfortable in the growth and protection of their wealth now and in the years to come. Contact Chad at 315.699.2702 or cgermain@mtb.com to talk about your personal retirement planning goals.

Brokerage services and insurance products are offered by M&T Securities, Inc. (member FINRA/SIPC), not by M&T Bank. M&T Securities, Inc. is licensed as an insurance agent and acts as agent for insurers. Insurance policies are obligations of the insurers that issue the policies. Insurance products may not be available in all states.

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This article is for informational purposes only. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. Please consult with the professionals of your choice to discuss your situation.

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