Four Questions to Help you Prepare for Retirement
August 2023

Four Questions to Help you Prepare for Retirement

Ask these four questions to help you prepare for retirement

To determine how much you will need to fund your retirement, it’s helpful to estimate what your budget will look like. These four questions could help you identify your retirement lifestyle and plan for the related costs.

1. What will I be doing?

  • Do I plan to continue working past age 65 or after I reach my full retirement age? Full time or part time?
  • Are there hobbies I want to pursue that will either cost money or make money?
  • Is there volunteer work that may also have costs associated?
  • Do I plan to travel? Where?
  • Are there things I enjoy that have related costs?

2. Where will I be living?

  • Will I stay in my current home or downsize to something smaller or a rental property?
  • Will I move to a retirement community or assisted living facility?
  • Will I sell my home and replace it with an RV or other alternative living option?

3. What situations could impact my expenditures?

  • What health care coverage do I need for my health conditions?
  • Do I have an emergency fund for unexpected situations such as a health care crisis or property loss due to a natural disaster?
  • What if I stop working sooner than expected?
  • What happens if I experience a significant income loss?

4. What barriers are keeping me from investing?

  • I have nothing extra to invest.
  • I have education loans or other debt.
  • I don’t know how to start an investment plan.
  • I have time to start saving later.

Next steps

Prepare rather than panic. Create an outline from your answers to these questions. It should give you the framework to calculate the income you may need to support your retirement lifestyle.

Decide to adjust your spending patterns today. Choose something you really don’t need and redirect that amount into your retirement savings. Take advantage of growth potential over time. Pay yourself first instead of spending money on something that won’t support your future retirement needs. Creating that nest egg now could reduce your stress about money.

Start or add to an emergency fund. Even if the amount seems very small, it’s important to take the first step. As that amount grows and the behavior becomes a habit, you will likely gain confidence and momentum in your investment activities.

Meet with a financial advisor to review your answers and turn your outline into a plan to help you work toward your goals.

This article has been prepared for informational purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Investing involves risk including the possible loss of principle. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. The accuracy and completeness of this information is not guaranteed and is subject to change. Since each investor’s situation is unique you need to review your specific investment objectives, risk tolerance and liquidity needs with your financial professional(s) before an appropriate investment strategy can be selected. Also, since Wells Fargo Advisors does not provide tax or legal advice, investors need to consult with their own tax and legal advisors before taking any action that may have tax or legal consequences.

This article was written by Wells Fargo Advisors Financial Network and provided courtesy of Wurm & Frye Wealth Management in Roseville, CA at (916) 789-8778.

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. Wurm & Frye Wealth Management is a separate entity from WFAFN.

©2021 Wells Fargo Advisors Financial Network, LLC. All rights reserved. CAR-0623-02522

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