Retirement planning is not a singular event. It is a series of action steps that prepare you for a brighter future. Many people spend decades planning for retirement – saving money, making sound investments, sometimes putting off big purchases to save for the future.
Then the future arrives, and with it comes a new question:
What do you do now with all the good decisions you have made?
At Fiat Wealth Management, managing partners Brad Gotto and Matt Stahl work with clients every day to answer this fundamental question. In their years of experience, they have found that a successful retirement often comes down to four basic elements:
- Your Purpose
- Your Spending
- Your Giving
- Your Legacy
No matter how large your retirement account, if you address these four key areas, you can enjoy a successful and rewarding retirement.
Starting With a Purpose
The first and most important step is entering retirement with a clear purpose. Although it seems clear, this step can be one of the more challenging. Many people know exactly what to do to plan for retirement, but they don’t know exactly what to do once they reach retirement.
At Fiat Wealth Management, they walk clients through a process known as the “Walkthrough.” During this initial planning meeting, advisors help their clients articulate their values, uncover their desires for retirement, and begin the process of planning action steps.
For example, you might want to spend your retirement years traveling, or perhaps you want to relocate closer to family. The advisors at Fiat Wealth Management help you create a budget that accommodates your vision, giving you the confidence and peace of mind to move forward.
It is difficult to plan for your retirement when you don’t yet know where you want to go – which is why setting your purpose is so essential. Although that purpose may require some adjustment over time, stating it upfront is the best way to put your other action steps into practice.
Spending Habits
After setting your purpose, it is time to evaluate your spending habits. This often requires another important mindset shift – to think of yourself as a spender instead of a saver. You have spent your employment years meticulously saving and investing to reach this moment, and now is the time to think about where you want to spend.
It is important to remember that unless you take on another part-time job, the money that you have saved for retirement is essentially what you will have for the rest of your life. At Fiat Wealth Management, they will work with you to design a thoughtful plan for spending your funds in a way that reflects the purpose that you have already created.
Whether that means spending everything on experiences and purchases that perhaps you put off during your employment years, giving away a portion of your funds, or investing in the future beyond your lifetime, the advisors at Fiat Wealth Management will guide you toward sound financial decisions.
Charitable Giving
For many retirees, one of their important values is supporting their favorite charities or non-profit organizations. If this is your intent as well, there are ways to incorporate charitable giving into your budget without incurring massive tax penalties.
By structuring charitable distributions in tax-advantaged systems (for example, a charitable lead trust or charitable remainder trust), you can ensure that more of your funds go directly to the charity of your choice – instead of being taken in taxes.
Building Your Legacy
Retirement is often the time people start thinking about the long-term future – and how they can benefit their family and community for years after they are gone.
When you are building your retirement plan, there are key differences between the money that will be spent, the money that will be given away in the short term, and the funds that you have reserved for legacy building. There are not only philosophical differences and differences of purpose, but differences in tax as well.
The best step you can take to ensure you are building a solid future for your beneficiaries is to meet with an expert financial advisor. At Fiat Wealth Management, they will show you not only the differences in retirement planning strategies but which strategy will best serve your purpose.
When you spend decades preparing for your retirement, you want to make sure you have the right direction when you arrive. Starting with a purpose, planning your spending, and arranging charitable giving will ensure that you not only play the long game but that you win.
Fiat Wealth Management helps clients understand tax planning in their financial journey, empowering them to make thoughtful, wise investment decisions.
To learn more about Fiat Wealth Management, including access to their weekly podcast, visit www.fiatwm.com or follow them on Instagram.
Written in partnership with Ascend
