Skip to content

Basic Recommendations for a Work-Free Retirement

October 18, 2019

In today’s world, it’s becoming more and more frequent for people to need to continue working post-retirement. This trend is taking away from most retirees’ main goal: to enjoy a leisurely, comfortable, and work-free retirement. As professionals in the self-directed retirement industry, it’s our job to help as many people as we can to achieve their retirement goals.

Most clients have spent countless years in the workforce and deserve to have a reasonable stopping point. As retirement industry professionals, this is why we strive to ensure that clients won’t be required to work after retirement, and can enjoy life to the fullest.

Here are a few simple steps to recommend to and assist clients with to better empower them toward a work-free retirement.

Establish a Retirement Budget

The first step is to sit down and establish a retirement budget. It needs to be realistic, manageable, and livable. This seems rather straightforward and obvious, but this step is imperative for any retirement plan.

In addition to establishing a budget, the client needs to be taught how to manage and adhere to it correctly. It’s one thing to supply numbers for them and another thing to guide them on how to live within those means.

Navigating a work-free retirement budget is very different from navigating an employed budget. It requires a deeper understanding of how much money has been set aside, how far that money can be stretched, and the specific elements that have been planned for as part of one’s retirement goals.

Consider a budget to be the foundation of retirement for every client. Without a budget, staying retired will be virtually impossible.

Ensure a Guaranteed Income

Whether it’s ​Social Security​, an investment, or something else, a guaranteed income is a necessity. It should be a part of every clients’ goal to secure a trustworthy income after their retirement.

When thinking about income, you may immediately think about having to work. But this isn’t always the case, especially when talking about retirement. As mentioned before, Social Security and investments are two great options. If a client can successfully have both, that’s even better.

Make Wise Investments

Another responsibility of self-directed retirement custodians is to ensure clients understand what’s considered a safe and wise investment. “Good” and “poor” investments will look different for each individual, but there are basic safety precautions that every investor can take.

There are many unique things that people invest in today. Choosing an investment that is fun and enjoyable for the client is a great idea, but it could also be risky. Clients should be sure that they’re investing in something that is stable and secure.

A popular choice is purchasing a property to ​rent out through a self-directed IRA. As long as the property isn’t taking more from the client than it’s giving back, this is a great investment. It will secure long-term income after retirement and can allow the client to stay unemployed.

Make the Most of Withdrawals

In retirement, the flow of money to the bank becomes less than when employed. This means that clients need to be optimizing the withdrawals they make.

It’s easy to get caught up in mindless withdrawals and not pay close attention to the flow of money going in and out of the bank. But that’s why clients need to be educated on proper bank withdrawals and prohibited transactions.

It may seem elementary, but you have to consider that the client is making a major lifestyle change. Going from being employed with a steady income to retiring with a smaller income is a big adjustment.

Assist clients with setting up a plan of action retirement to ensure that their withdrawals are meaningful and necessary.

Prepare for Health Insurance

It’s no secret that the older we get, the more we need to pay attention to our health. Individuals heading into retirement are no exception. In fact, it’s vital that they be prepared to pay for health insurance throughout their work-free retirement.

Depending on the job that they are retiring from, every client’s health insurance situation will look different. As such, planning for that before retirement and accommodating for unexpected health issues is vital.

Retired living should be relaxing, effortless, and enjoyable. After all, clients have spent years in the workforce and deserve the sort of lifestyle they’ve been dreaming about. With the right tools and guidance, they can achieve those dreams! It just requires being informed, prepared, and having a retirement plan. That’s where retirement professionals come in.

Become a Certified Self-Directed Industry Professional (SDIP)

To better assist clients, start by mastering the IRA fundamentals. RITA’s advanced self-directed IRA classes are the only one of their kind in the industry. Register for our next IRA Advanced Institute to earn your certification.

Leave a Comment