10 principles for living in retirement

Retirement isn’t merely a goal you reach — it’s a journey that can be very rewarding. With that in mind, we offer the following principles as a “road map” to serve as a guide along the way.
1. Map out your goals. When preparing for a journey, a map can be invaluable. It can help you avoid wrong turns that can cost precious time. Although the word “retirement” means something different to each person, everyone shares the need to enter retirement with a road map, or strategy, in place.
2. Plan for a long and fulfilling retirement. Retirement should be one of the most rewarding stages of your life. Unfortunately, many people don’t plan for a long retirement and can run the risk of outliving their money.

3. Start smart with your spending. As the saying goes, it’s not how you start but how you finish. But in retirement, how you start is very important. Withdrawing too much in the early years could put you in a difficult position down the road.
4. Inflation doesn’t retire. All of us remember a time when our purchases cost a lot less. That’s inflation at work. Inflation influences what you can spend and how your money is invested, especially in retirement.
5. Prepare for the unexpected. Life is full of uncertainty. Even with a well-designed road map, there can be unexpected events that have the potential to derail your long-term plans. While you can’t predict the future, you can prepare for it.
6. Don’t reach for yield. High-yield bonds or stocks paying an abnormally high dividend often attract investors looking for more income. However, remember the saying, “There’s no such thing as a free lunch.” If it sounds too good to be true, it probably is.
7. Maintain a healthy portfolio. Health care costs continue to rise, which can have harmful side effects for your finances. However, there are ways to help deal with rising health care costs.
8. Keep retirement from being taxing. As you consider how much money to withdraw, don’t forget about taxes. Every dollar you pay in taxes is one less dollar you can spend.
9. Define your legacy. Preparing for life in retirement is important. It can be just as important to prepare your legacy. One thing is certain: If you don’t have a strategy for your estate, the courts or government will.
10. Remember your annual checkup. A trip to the doctor each year can provide vital health information and help identify issues before they become more serious. The same can be said for annual financial reviews.
Contact your financial advisor today for your annual financial review.
Edward Jones, its employees and financial advisors do not provide tax or legal advice. Clients should review their specific situations with their tax advisor or legal professional for information regarding their particular situation.