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What sets high-net-worth individuals apart when planning forretirement?
Its not fancy investments or exclusive strategies its the way they rely on detailed, comprehensive financial plans.
The biggest piece of advice for retirees is to create a financial plan before retiring, he explained.
Each source operates differently.
Knowing thetiming and tax implicationsof each source is key.
Its easy to underestimate lifestyle costs in retirement.
Seeing the big picture makes it easier to adjust spending if necessary.
Preparing for Lifestyle Adjustments
Financial planning doesnt stop at budgeting.
Marcinko highlights another challenge: Filling newfound free time.
Wealthy retirees often travel extensively, volunteer with organizations or take up expensive hobbies.
It needs purpose and structure.
Think about what will make the next phase of life meaningful.
Prioritizing Contributions Before Retirement
Creating a plan doesnt just mean managing finances after retirement.
High-net-worth individuals often focus on maximizing contributions during their working years.
While it might seem like theyre simply working with larger sums, the principles are universal.
Max out 401(k)s and IRAs, especially if theres an employer match.
Catch-up contributions for those over 50 are a no-brainer.
Tax-advantaged accounts like HSAs are also powerful tools, letting people saving more now forless financial stressin the future.
Factoring in Unexpected Costs
Even the best financial plan should account for the unexpected.
For those with significant assets, tools like estate planning or long-term care insurance come into play.
While these strategies may not be necessary for everyone, the principle preparing for the unexpected is universal.
Agood financial planshows that youre on track for a successful retirement.
Its the peace of mind that comes from knowing the numbers work, said Marcinko.
This approach isnt limited to those with deep pockets.
Its not about having a massive fortune.
Its about making the most of what you have and thats something everyone can do.
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