Why You Need a Financial Plan for Your 70s, 80s, and Beyond

Many people spend years preparing for retirement, but fewer take the time to plan for what comes after that initial transition. The truth is, your financial journey does not end when you retire! In fact, your seventies, eighties, and beyond may require just as much strategy and foresight as your working years.

As life expectancy continues to increase, it is not uncommon for retirement to last twenty to thirty years or more. That is a long time to rely on savings, investments, and fixed income sources. Without a solid financial plan, you could face challenges that impact your quality of life and your ability to maintain independence.

Healthcare Costs Continue to Rise

Healthcare expenses tend to grow with age. Even with Medicare coverage, you may face out-of-pocket costs for prescriptions, supplemental insurance, long-term care, and other medical services. In fact, the 2024 Retiree Health Cost Index by Milliman predicts that a healthy 65-year-old couple retiring today can expect to spend at least $395,000 on healthcare costs throughout their retirement years. These expenses can quickly eat into your savings if they are not planned for in advance.

Required Minimum Distributions (RMDs)

Once you reach your seventies, the IRS requires you to begin taking minimum distributions from your traditional retirement accounts. If you are not prepared, these distributions could push you into a higher tax bracket or impact your eligibility for certain benefits. A thoughtful distribution strategy can help you minimize taxes and make the most of your retirement assets.

The Risk of Outliving Your Savings

It is a common concern among retirees. Living longer is a gift, but it also means your money needs to last longer. Without a plan, you may find yourself needing to adjust your lifestyle or rely on family members for support. A well-designed financial plan can give you peace of mind and help ensure your resources are protected for the long haul.

Estate and Legacy Planning

Your later years are an ideal time to think about the legacy you want to leave. A strong financial plan includes guidance on wills, trusts, charitable giving, and how to pass on your assets efficiently and according to your wishes. It also prepares your loved ones for important decisions if you become unable to manage your own affairs.

Planning for Care and Independence

Whether you hope to age in place or anticipate the possibility of assisted living, planning for care is essential. This includes evaluating long-term care insurance options, understanding local resources, and determining how you will pay for different levels of care if needed.

According to Care Scout, the cost of long term care can vary widely, but national averages exceed $6,000 per month for in-home care and $9,000 per month for nursing homes. Planning ahead gives you more control and reduces the burden on your family.

Planning Should Be Continuous

It is never too early or too late to start planning for the later stages of retirement. Each decade brings new opportunities and challenges, and having a tailored strategy can help you navigate them with confidence.

If you are in or approaching your seventies, eighties, or beyond, now is the time to make sure your financial plan is aligned with your current and future needs. Contact our office to schedule a retirement planning consultation. We are here to help you create a strategy that supports your goals, protects your assets, and brings you lasting peace of mind.

About the Author: Mark Roberts

In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution. Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies. Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.” Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.

Why You Need a Financial Plan for Your 70s, 80s, and Beyond