BY JOE M. COX II
When most people think about retirement, they often focus on saving and investing: the money stuff.
In fact, the media and financial industry are obsessed with just this one area. But to truly achieve a happy and healthy retirement, a more holistic approach is needed.
The four pillars to a successful retirement are finances, health, community and intellectual growth. It”™s important to be balanced in all four of these foundational areas and to have an understanding how each will morph and change with age. Planning for and embracing change will be smoother if there”™s a comprehensive road map.
Ӣ Financial considerations: Create a written financial plan that tests your cash budget based on certain scenarios;
Ӣ Health and medical issues: Write a plan that discusses the proximity and quality of health care. Also include an activity and exercise plan that grows and changes with age.
We”™ll discuss community and support as well as intellectual stimulation and growth in part two. For this article, let”™s focus on points one and two.
Everyone worries about money in retirement. Is there enough? Will it last? First ask how much income is available versus how much you would like to spend. Portfolios should be diversified ”” cash, bonds, equities, real estate, etc. But what is often overlooked is retirement location. Is it more important to be closer to family or to places like the beach? You should also consider tax implications. Moving to Florida or Texas may not be your ideal choice, but as they say ”¦ if the price is right.
Something that was learned from the Great Recession is that no one planned for adult children living at home much longer than expected. This calls for soul searching ”“ risk retirement or ease their debt? There”™s no right answer, but these are important discussions to have so that everyone understands the rules.
Speaking of loved ones ”” currently, a married couple can give away almost $11 million of their estate to their children or grandchildren without any undue burden of federal estate taxes. However, without a plan, it may fall prey to taxes and improper distribution.
You know that old saying, if you have your health, you have everything? Staying healthy, wealthy and wise are all equally critical to a successful retirement. While many dream of retiring to a remote beach or an isolated mountain cabin, it is important to consider your proximity to health care. Access to quality preventive and emergency health care may make the difference in a long and healthy retirement. Although it is important to be prepared for increased medical costs with increased age, it is also important to include preventive medicine in your lifestyle ”” starting in your 20s. Studies show keeping your body in shape and brain sharp decreases the likelihood of cognitive decline.
A healthy lifestyle should be a way of living, not just a quick fix to feel better. Being active and eating right reduces stress, increases happiness and improves self-confidence. Getting a daily dose of vitamin D improves your mood. Getting enough sleep has been proven to impede cognitive decline and many life-threatening illnesses. And your mother always told you to eat your fruits and vegetables when you were a kid, but she didn”™t say it would pay off dividends as an adult. Antioxidants keep your skin looking young and your teeth looking whiter.
A healthy retirement is definitely something to smile about. Remember, no one cares more about your money than you do. Coming up: The remaining two pillars to a successful retirement.
Joe M. Cox II is senior vice president and director of wealth advisory services at Webster Wealth Advisors ”“ a component of Webster Private Bank”™s offering for high-net-worth individuals, families and nonprofits. He works in Fairfield County. He can be reached at jcox@websterbank.com.
