Some Thoughts on Finances during Retirement, Part 2

One of the most common reactions by people who are in financial stress is to try and “forget” about the problem and just continue in the vain hope that something may come to light in the future, or that the problem will somehow disappear.

There is only one way to deal with this type of problem, and the primary rule is to tackle it as quickly as possible. Embarrassment is quite normal, and not allowing this to override your priority of addressing the subject as quickly as possible is the correct way to go. Personal details are confidential in any event.

Nobody who does not have the correct qualifications is able to deal with this themselves. Objectivity is necessary to deal with the issue and being qualified to do the correct calculations is essential. Some issues tend to complicate the question, and we would recommend that you look at the following:

Things to forget about

• Leaving money as a legacy – your financial survival takes priority.
• Talking to a confidant – they are not usually qualified to advise you.
• Trying to do a proper planning remotely – a professional adviser would like to see you face to face.
• Forget about trying to write you own will – professionals are necessary because it can be complicated.
• Hoping for positive changes that could happen – plan for now.

Remember to

• Ask your advisor to calculate future income ensuring you get an annual increase.
• Aim for the smallest possible income to start with.
• Realise that if you do not plan for life expectancy you are planning for bankruptcy.
• Make peace with that which you cannot change – if you could have you would have.
• Our voluntary survey indicated that over 60% of seniors would do their retirement planning differently if it were possible to do so.
• Consider a funeral policy, if possible, which is also legacy of a kind.

Remember rule No 1: There is no “catch up” fund or opportunity that offers an exceptionally high return without exceptionally high risks. Plenty of people have been scammed because they were wanting to catch up on past mistakes. Be real with yourself and get really good professional advice. You do not go to a Dentist for a Brain operation.

If you missed Part 1, you can find it here.

Written by Paul Rosenbrock