Looking at the Financial Side of Retirement: Boomers Redefine Retirement

Retirement can mean different things to different people. AARP reported that for boomers, retirement could mean transitioning from a full-time career to part-time work. To some it means spending more time with family, gardening or
playing more golf.

Regardless of the meaning of retirement to individual retirees, everyone needs to have a sense of financial security.

The economic world has been a confusing and unsure arena over the past few years and for those getting ready to retire during such an uncertain time, getting the help from a financial adviser should
be on the "to do before retiring" list.

“Retirement really is a three-legged stool,” said Mike Tschantz, a certified financial planner with the Tschantz Agency in North Canton. “The first leg is government or STRS or PERS benefits. The second leg is to understand any company benefits such as 401(k) or other.
Then the third leg is one’s private investments and savings.”

Understanding where the retirement income is coming from is just one tip that Tschantz recommends. He also suggests:

• Do a budget of how much money will be needed to live on.
• Assess risk and returns so that future and current investments are appropriate
• Prepare for unexpected events such as health or large home expenses and compile an emergency fund to cover such events
• Obtain health and long-term care insurance.
• Envision what retirement might be like. To stay active, possibly plan to return to school.
• Have an estate plan with wills and power-of-attorney prepared and keep them up to date.

Harlan Storey of Storey and Associates on South Main Street in North Canton, adds a few more suggestions for boomers.

"The suggestions I have are not all about the financial side," Storey said. "Some have to do with getting in shape physically so that you’ll spend less time at the doctor, which will help the money go further.”

“It is a good idea to get a full physical and determine any work that one may need such as getting a new knee and then getting that work done before retiring so that it can be paid for through company-paid health insurance.”

In addition, Storey recommends:

• Determine a budget needed for retirement and then live on that budget for one year prior to retirement. It will help build discipline and lets you know what you can afford.
• From a cash standpoint, pay off all consumer debt including credit cards, car loans, and do not make any large home improvements that will require a loan before retiring.
• It is important to have health insurance nailed down, especially if there are a few years between when one retires and when one qualifies for Medicare.
• Before retiring, build up a fund for the price of buying a new car after retirement. This makes for a tangible goal for saving money.

“The availability of health insurance is one of the motivational factors for staying on a job versus retiring," Storey said. "The boomers are the most innovative generation in history with entrepreneurship, technology and engineering. I don’t think that they will want to just stop and retire."

One additional tip provided through AARP is to use all of the online social media outlets to continue to network with others you have worked with or with new people who can help you maintain an active
lifestyle. Or be proactive and start a morning meet-up group in the area to socialize and to keep current on events and on ways to stay physically and financially fit.