Financial Focus
CATEGORY  
 
Number of Words: 536

Purpose-driven Retirement Needs a Financial Strategy

Today’s retirees, and those of tomorrow, have had a sense of purpose their entire lives – and they don’t intend to give it up just because they’ll no longer be working full time. In fact, 55% of recent retirees said retirement is the time for “a new chapter in life,” compared with just 22% who said it was “a time for rest and relaxation,” according to the 2020 Edward Jones/Age Wave Four Pillars of the New Retirement study. And the same study found that 95% of retirees said it was important to keep learning and growing at every age. But however they find their purpose – contributing to the community, growing intellectually, gaining new experiences and so on – retirees will need to be financially prepared.

How can you prepare for a purposeful retirement? You may want to start by asking yourself these questions:

  • Will I need to prioritize some of my goals? As a retiree, you may hope to do any number of things. You might want to learn new skills through hands-on training at a local vocational school or crafts organization. You might want to take up a hobby such as collecting rare wines. You may even want to fix up old houses. And you also might want to expand your view of the world by traveling extensively. If, like almost everyone else, you won’t have unlimited financial resources during your retirement years, you may need to prioritize these goals, worthy as they may all be to your sense of purpose.
  • Can I still afford to retire at the age I planned? When you first calculated your ideal retirement age, you might have been counting on your investment portfolio having returned a certain percentage. Or you might have had different goals in mind than you do now. Or you might have had a somewhat different family situation. Changes in any or all of these factors could affect the age at which you choose to retire. But if you conclude that you may need to postpone retirement for a couple of years, your decision could offer some advantages, such as the ability to contribute more to your IRA and your 401(k) or similar employer-sponsored plan. In any case, it’s a good idea to review your retirement plans periodically, perhaps at least once a year.
  • How can I incorporate philanthropy into my financial strategy? Giving back to your community may be a key element of your purpose-driven retirement. Yet, with so many educational, civic and cultural groups in existence – including many in your own area – you probably can’t give as much as you’d like to all of them without affecting your own lifestyle today and the legacy you’d like to leave for your family. So, you may want to take two distinct steps. First, consider establishing a budget for how much you will give to charitable groups each year. And, second, think about including philanthropy in your estate plans. Because there are many vehicles and techniques available, you should consult with your legal, tax and financial professionals when drawing up your estate-planning strategies.

It can be extremely rewarding to live your retirement purposefully – but you’ll find it a lot easier to do when you make the right financial moves.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones. Member SIPC.

Purpose-driven Retirement Needs a Financial Strategy

Short /Radio version:

PSA: Purpose-Driven Retirement Needs a Financial Strategy

TBA: Sept. 7, 2020

Words: 186 (excluding FA’s name, address/phone number)

Today’s retirees are looking for purpose. In fact, 55% of them said retirement is the time for “a new chapter in life,” according to the 2020 Edward Jones/Age Wave Four Pillars of the New Retirement study. But to afford this new chapter, retirees need to be financially prepared.

If you’re approaching retirement, how can you achieve this financial preparation?

For one thing, you may need to prioritize your goals. You might want to travel the world, collect rare wines or fix up old houses, but time and money may force you to make some choices.

You might also want to calculate if you can still afford to retire when you had initially planned. If you need to work longer, you can benefit by adding more money to your 401(k) and IRA.

Finally, if giving back to your community is a key element of your purpose-driven life, you’ll need to budget how much you can give to charitable groups each year.

It can be extremely rewarding to live your retirement purposefully – but you’ll find it a lot easier to do when you make the right financial moves.

This is (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone #).

Member SIPC


Number of Words:186

Copyright © 2020 Edward D. Jones & Co., L.P. All rights reserved. Member SIPC.
This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. financial advisors. Edward Jones' U.S. financial advisors may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.