Key Differences In Financial Challenges And Goals For The Phases Of Retirement

People often forget that retirement has several phases. There is a tendency to conveniently place it right after one has stopped working and lump everything together into an indiscriminate episode. It should be noted that each phase has its own unique challenges: physical, emotional, financial, etc. All these might require very specific approaches and solutions that are tailored to the changing needs of the retiree. A one-size-fits-all method might deprive one of the possible joys of retirement.

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Here are some of the basic considerations one needs to reflect on for each discernible stage, which in the end might prove to be the most practical and life-affirming plans a person can make to have a delightful retiree’s life:


Although this is not yet retirement proper, one should already assess foreseeable sources of income once the paychecks stop coming. It is advisable to check the status of one’s defined contribution plans and social insurances. There might also be a need to evaluate the ratios of expenditures, investments, and savings to avoid being shortchanged in the next 10 to 15 years during the first technical phase of retirement.

Early Retirement

The spending will surely go through the roof in the early years of retirement. People are inclined to think that they have won some kind of lottery, and purchases and travels are simply rewards they ought to get for themselves after all the hard work. These might be balanced by the fact that you no longer need to spend too much on clothes, gasoline, or contributions. One should make definite arrangements though for augmenting the income just so one can continue enjoying this phase.

Middle Retirement

Social insurances and other benefits from employment plans will usually kick in around this time. That means new income. The travels and other luxuries might take a backseat, and retirees might prefer to spend more time with the family. This should be a good time also to review your asset allocations and estate plans.

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Late Retirement

Obviously, one will spend a lot on health care during this stage. For some cases, it might still be a wise thing to continue revisiting funds and investments for the remainder of one’s life and for the loved ones who will be left behind.

Andrew Corbman works to ensure that his clients remain financially independent post-retirement, utilizing in-depth industry experience. For more useful retirement planning advice, visit this blog.


Three Crucial Factors Involved in Retirement Planning

Retirement shouldn’t be an afterthought. These days, young professionals are being encouraged to start thinking about the later decades of their lives. After spending many decades as part of the workforce, individuals must continue to lead a financially stable life even after their regular employment. Here are some crucial factors that must not be overlooked in planning for retirement:

Diversified investments

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Aside from a person’s retirement fund, it’s also important to start diversifying assets that will grow through the years. A common mistake made by many is that they only think about investments later in their life. Investing one’s money doesn’t need to start expensive. With the right financial planning, an individual can start building a portfolio without using funds from major income streams.

Taking out funds from a retirement plan

Tough times or a change of jobs can lead a person to cash out of a retirement plan. While choosing to cash out seems to be an attractive option sometimes, a better alternative would be to transfer the existing account to another retirement account. This will allow the allotted retirement funds to grow while remaining untouched. Instead of taking funds out of retirement, it would be better for an individual also to set aside finances for an emergency fund.

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Overlooked taxes

Regular 401(k) accounts are not tax-free. This means that a retiree will get taxed every time they take out funds in the future. Instead of just relying on the traditional retirement plan, investing in tax-free retirement streams will allow an individual to have more income in the future.

Employees should be wise about where they will invest for their retirement years. Seeking the help of reliable financial planners will make the decision making easier and hassle-free.

Andrew Corbman and the team at ASC Financial help individuals identify potential shortfalls of their Social Security funds and maximize their revenue streams post-retirement. Visit this page for more information.

Weighing in the advantages of cash-value life insurance for retirement

Life insurance is usually associated with the young. Younger adults, particularly those with children under their care, are typically encouraged to take a life insurance policy to ensure that their dependents have some sort of financial backing in the event of their untimely demise. Beyond this, these policies can also serve as an invaluable tool in the retiree’s financial arsenal, particularly for those who have maxed out their contributions to 401(k) and other retirement accounts.

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Life insurance policies can provide a retired married couple with some assurance that their spouse would have an additional, tax advantaged source of funds should one of them outlive the other. The death benefit payout received by the bereaved widow or widower would then be used to fund other sources of retirement funds.

The many varieties of cash-value life insurance can also provide retirees with another tax-advantaged place to store their excess retirement funds, delivering an interest payout as the funds accumulate. These funds can be accessed while the individual policyholder is still alive, in the form of a loan or withdrawal, which are tax-free. When used at the appropriate circumstances, this method can deliver some retirees with yet another source of retirement revenue.

However, there are a few disadvantages to this strategy as well. Insurance costs can affect the performance of the policy as an investment asset. Likewise, policyholders should choose when they take out a loan or withdrawal from the policy carefully; the amount is deducted from the final death benefit unless it is paid back.

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Andrew Corbman and the ASC Financial team help older adults explore their options and maximize their revenue streams for retirement. Visit his company’s website for more information.