25 Questions to Ask Before Retirement

Finances, despite being a critical aspect of daily life, linger in the shadows of conversation. 

Why are people so hesitant to talk about their finances? Even with their own spouse, children or family members?

Societal norms tell us not to.

Money is considered to be a sensitive topic that is carried with a certain level of perceived success or failure. Many fear judgement and comparison.

But despite these barriers that come with money conversations, you’re looking for a way to talk about money to have a good understanding of if you’re ready for retirement.

Or maybe you want to make sure your parents, friends, or someone in your life is ready for a stress-free retirement.

We know you don’t want them to get taken advantage of, not spend enough money, run out of money, pay too much money to the government or end up with a financial mess if something were to happen to one of them.

So we’ve created a list of financial questions for you to ask before you or someone you know retires.

And the best part is, you don’t even have to talk numbers. Your never have to disclose how much money they have or what their net worth is.

These questions will help you or someone you love know if they are ready for retirement.

Tax

1.     Do you have a plan to minimize taxes in retirement?

2.     Have you identified any tax planning strategies to lower your lifetime tax bill?

3.     Do you plan to consider any Roth conversions in retirement?

Cash Flow

4.     Do you know how much is enough to retire?

5.     Do you know how much you can spend each year without ever running out of money?

6.     Do you know how many years your money will last?

7.     Do you know when is the best time for you to claim Social Security?

8.     Do you have any debts? (Including a mortgage)

a.     If yes, do you have a plan to pay these off before you retire or in the very near future?

Investments

9. Do you know which accounts you should distribute money from first in retirement to incur the least amount of taxes?

10. Do you know how to manage your investments to ensure you are invested in the right funds and paying the least amount of expenses?

11. Do you have a pension?

If yes:

• Do you know how to optimize your pension?

12. Do you have money in taxable, tax-free and tax-deferred accounts to optimize your tax situation?

13. Are any of your investments tied up in annuities?

Estate Plans

14. Do you have your estate plans in place?

If yes:

• Do you have these 5 documents in place: Last Will in Testament, Financial Power of Attorney, Health Care Directive, A Living Will, and a Trust? (A Trust is optional, but often recommended if they own a home or any real estate)

• How would I, or family members, find your estate plans if needed? Where are they?

• Would you be open to a family meeting to discuss your wishes without disclosing exact numbers?

If no:

• Do you have an affordable estate planning attorney in mind to meet with? (Blend Wealth can help!)

15. What are your funeral plans and desires? (i.e. Buried, cremated, service, celebration of life, family trip)

16. Do you plan to leave an inheritance?

If yes:

• Do you know how much you can spend each year and still meet your inheritance goal?

Insurance

17. Do you still have life insurance?

If yes:

• Do you know what type of life insurance you have? (it may no longer be necessary)

18. Do you know how to apply for Medicare?

19. Do you have long-term care insurance? Do you know if you need it?

Goals/Dreams

20. What do you plan to retire to? (What do you plan to do with your time?)

21. Do you have any retirement dreams that you would like to fulfill?

22. Do you want to travel?

If yes:

• Do you know how much your travel expenses will be each year and how they will impact your financial plan?

A Trusted Financial Partner

23. If something happens to the financial spouse, do you have someone in mind that can look after and guide your spouse? (consider starting a relationship with an advisor now!)

24. Do you have a financial advisor?

If yes:

• Are they an sales/product focused? Or do they manage your entire financial life and provide financial planning, retirement planning, tax planning, investment management, estate planning and insurance planning?

• How often do hear from your advisor? (Should be more than 1 time a year)

• Does your advisor educate you and answer your questions thoroughly?

If no:

• If something happens to the financial spouse, do you have someone in mind that can look after and guide your spouse? (consider starting a relationship with an advisor now!)

• Are you worried that you may miss out on optimizing your financial situation?

25. Would you like to meet with a financial advisor that manages your entire financial life (including taxes)?

If yes:

Blend Wealth would love to meet with you!

We hope these questions create engaging conversation for you and your family.

Feel free to set up an intro call with us anytime to see how they can help you!