What sets high-net-worth individuals apart when planning for retirement? It’s not fancy investments or exclusive strategies — it’s the way they rely on detailed, comprehensive financial plans.
According to Patrick Marcinko, certified financial planner (CFP) at Bogart Wealth, this approach isn’t just for the wealthy.
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“The biggest piece of advice for retirees is to create a financial plan before retiring,” he explained. “A good financial plan should provide peace of mind that you are on track for a successful retirement, financially.”
While wealthy retirees often have multiple income streams and larger portfolios, the principles behind their success are accessible to anyone. Here’s how this strategy works — and why it’s worth adopting.
For retirees, income often comes from various sources–including Social Security, pensions, investment accounts and rental properties. Each source operates differently. Social Security, for example, might not kick in for years, and investment accounts may be subject to market fluctuations. Knowing the timing and tax implications of each source is key.
It’s easy to underestimate lifestyle costs in retirement. Whether it’s traveling, picking up new hobbies or helping grandchildren with education expenses, things can add up quickly. By categorizing expenses into fixed (housing, insurance, utilities) and discretionary (entertainment, travel), retirees will find it easy to budget. Seeing the big picture makes it easier to adjust spending if necessary.
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Financial planning doesn’t stop at budgeting. Marcinko highlights another challenge: Filling newfound free time.
“A big adjustment at the beginning of retirement is the amount of free time that is available,” he said.
Wealthy retirees often travel extensively, volunteer with organizations or take up expensive hobbies. While not every retiree has the same resources, the concept remains the same: A fulfilling retirement requires more than money. It needs purpose and structure.
Think about what will make the next phase of life meaningful. Whether it’s hobbies, family time or giving back to the community, start planning now and budget for it.
Creating a plan doesn’t just mean managing finances after retirement.
