By Brad Rhodes

Retirement. Ah, that golden period of life we all look forward to. You’ve worked hard over the years and it’s finally time to enjoy the fruits of your labor. But before you sail off into the sunset, it’s essential to have a solid plan in place. There are some crucial questions to answer, so let’s dig in.

1. When do I want to retire? The “when” is more significant than you might think. Retiring too early might mean you’ll need to stretch your savings for a longer period. Wait too long, and you might not have as many healthy years to enjoy it. The age at which you retire can also affect your Social Security benefits. It’s a complex puzzle, and it’s worth spending time to piece it together.

2. How much money will I need in retirement? This is a biggie. You need to estimate your living costs in retirement. Will you travel? Do you plan to spoil the grandkids? Maybe you want to pick up some new hobbies? All of this will cost money. And don’t forget about healthcare — a significant expense for many retirees. You’ll also need to consider inflation; it can significantly erode your purchasing power over time.

3. Where will my income come from? Your days of drawing a regular paycheck are ending, so where will your money come from? Consider all sources of income: Social Security, pensions, retirement savings like 401(k)s and IRAs, annuities and any other investments. Maybe you plan to work part-time? It all adds up. Just remember, some sources of income may be taxable, so make sure to account for that.

4. How will I spend my time? This might seem trivial compared to the financial questions, but it’s equally crucial. Staying mentally and physically active in retirement is essential for your health. Do you plan to travel, volunteer, go back to school, start a business, or spend more time with family? Maybe it’s a mix. Either way, it’s your time now. Make sure to spend it in ways that bring you joy and fulfillment.

5. What kind of legacy do I want to leave? Not everyone likes to talk about this, but it’s an essential part of retirement planning. Do you wish to leave something for your loved ones or a cause close to your heart? This could affect how you save and invest during retirement. Estate planning, including creating or updating your will and setting up any necessary trusts, is key here. It can ensure your wishes are followed and could help your heirs avoid unnecessary taxes and legal complications.

So, there you have it. Five vital questions to help you navigate your retirement journey. Remember, there’s no one-size-fits-all answer to any of these, and your answers might change over time. That’s OK. The important thing is to start thinking about these questions and making a plan. And don’t hesitate to reach out to professionals like financial advisors or estate attorneys. They can provide valuable guidance tailored to your specific situation. Here’s to a happy and fulfilling retirement!

Bonus tip: The most important thing about retirement is having a comprehensive plan that includes a foundation of safe money which covers financial stability, healthcare needs and personal fulfillment. This ensures that you have the resources to support your lifestyle and take care of any unexpected challenges, while also making the most of this new stage of life. Planning for retirement is an ongoing process and should be regularly reviewed and adjusted as needed.

Brad Rhodes lives in Lexington and is a member of Syndicated Columnists.