The 210 Financial Blog

There is a lot of discussion about saving for retirement, but what about spending during retirement? Adjusting to a lifestyle without a consistent paycheck and relying on your savings can be a challenge. It can be difficult to understand what expenses are possible and how to manage them. A budget can help you maintain financial stability and focus on the things that matter most to you in this new phase of life. 

Key Points – Spending Guilt in Retirement – and How to Overcome It 

1. Income Planning:  
2. Budgeting – the Balance of Your Finances:  
3. Working with a Financial Advisor:  
4. Conclusion:  

Income Planning:  

Retirees and pre-retirees often worry about running out of money during retirement. Having a solid income plan and understanding your budget can alleviate the guilt associated with spending in retirement.  

An income plan outlines the amount of money you will need to retire comfortably. While it's not as straightforward as that, it's just a basic idea. You'll need a certain sum to support yourself throughout retirement. Given the significance of healthcare costs, inflation, and taxes impacting your retirement accounts, maintaining an income plan is crucial. It helps you understand how to protect your finances from these factors that can erode your savings, so you can spend time without worrying about retirement.  

Learn More: Blueprint to a Relaxed Retirement: 5 Essential Pillars of the 210 Financial Plan

Budgeting – the Balance of Your Finances:   

Ah, the dreaded budget while it’s a trusted tool, but not one that is particularly well-liked. However, we all understand how crucial a budget having is for maintaining our finances and tracking where our money goes. A budget is an invaluable tool that can help you stay in control of your financial situation. 

Learn More: How to Create a Budget That Works for You: Practical Steps for Financial Success 

Big Purchases in Retirement:  

Sometimes, small purchases like groceries or gas are straightforward, but there are times when you may feel the need or desire to buy something bigger. Making a significant purchase, such as a home or a boat, for your fishing hobbies, can bring a lot of joy in your golden years. However, it also comes with added responsibilities, especially if you are on a fixed income. 

Hidden costs to consider:  

• Maintenance and upkeep  

• Insurance

• Taxes and other fees

Ask yourself how this purchase will affect your retirement plan. It may not completely derail your financial goals, but it will influence the bigger picture. Ensure that it is a worthwhile investment, that you find the best deal, and that you are confident it will still feel right for you a year from now. 

Lean More: Things to Know Before You Retire

https://www.youtube.com/watch?v=XedoEAD3tnQ

Working with a Financial Advisor:  

Consider talking with a dedicated financial advisor to gain a clearer understanding of your finances and the implications of your spending. Having a different perspective from someone who can view the facts without the emotional side of spending can help you make informed decisions regarding your finances in retirement. A financial advisor can assist with income planning and help you create a budget that meets your needs. 

Learn More: How a Financial Advisor Can Help You Navigate Retirement Decisions

Conclusion:  

You work hard for your money and your ability to retire, so don’t let fear hold you back from living your life in retirement. It’s completely normal to feel anxious about particularly when it comes to spending your finances. However, having a clear retirement plan can eliminate uncertainty and instill confidence. Consider scheduling a complimentary 15-minute call with an advisor at 210 Financial to discuss your personal questions and goals.

Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and 210 Wealth Management, Inc., d/b/a 210 Financial makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that 210 Financial may link to are not reviewed in their entirety for accuracy and 210 Financial assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from 210 Financial. For more information about 210 Wealth Management, Inc., d/b/a 210 Financial, including our Form ADV brochures, please visit https://adviserinfo.sec.gov or contact us at (309)263-1333. 

A strategy is a careful plan or method for achieving a specific goal, typically over the long term, as defined by Merriam-Webster. Having a well-defined plan is crucial for a retirement strategy; it should be rooted in action, not just hope. Your retirement plan shouldn’t rely on optimism alone; it should be based on a solid strategy, with contingency plans in place for unexpected challenges and ways to recover. At 210 Financial, we are here to provide the support and knowledge you need to strategically plan for your retirement. 

Key Points – Why Hoping for the Best Isn’t a Retirement Strategy 

• Building a Retirement Plan

• Seeking Financial Advice

• Investing for and in Retirement

• Retirement Strategy and Taxes

• Retirement Strategy and Healthcare

Building a Retirement Plan:  

Strategy involves both planning and action. At the start of the year, we often focus on planning and shifting our mindset toward who we want to become in the future. Each January, we strive to mold ourselves into the best version of ourselves. Setting goals is essential for achieving anything, and having a well-thought-out plan is crucial for success. 

Learn More: Frequently Asked Questions: Retirement Planning

Begin your retirement strategy with a comprehensive retirement plan. Start by envisioning your retirement. Do you want to travel, leave an inheritance for your family, enjoy hobbies, or give back to your community as a philanthropist? Whatever your retirement dreams may be, take the time to write them down. Having a clear vision of your goals can help you work toward achieving them successfully.

Think of retirement planning like building a house. The first step is to establish a strong foundation, which represents income planning. This helps you determine how much money you'll need to retire based on your desired lifestyle and goals. Next, you'll build the walls, representing investment planning. This involves finding an investment account, such as an IRA or 401(k), to help grow your savings. 

Once you have your foundation and walls in place, you’ll need to consider the doors and windows, which symbolize tax planning. While it's something many people think about only once a year, having a solid tax plan can save you money in the long run.  

The next step is to add the roof, which represents healthcare planning. Just as you appreciate a roof over your head, you’ll notice when it’s inadequate, especially when unexpected health issues arise. Lastly, don’t overlook the second part of your roof, which involves legacy planning and insurance. This aspect may not directly affect you, but it is crucial for ensuring that your loved ones are protected. 

By building this comprehensive retirement plan, you can help secure your future and support those you care about.   

Learn More: 3 Reasons Retirement Feels Scary (Even With Money Saved)  

https://www.youtube.com/watch?v=3wjeYDPjF2o

Seeking Financial Advice:  

Don’t go through it alone. Having a friend, coach, or mentor by your side can be invaluable when navigating your retirement strategy. Building a plan is an excellent first step, but you shouldn’t move forward without having it documented to help guide you through retirement. Seeking assistance from someone experienced, like a financial advisor, can provide the support you need to learn and understand the world of finance and retirement in a way that is tailored to your specific situation. 

Remember, everyone is different; what works for one person may not necessarily work for you. Personalizing any advice, you receive can be a game-changer in enhancing your understanding of your finances and retirement strategy. A dedicated financial advisor can assist you in your retirement journey. Speak with a financial advisor at 210 Financial and have them help make your complementary retirement plan today.  

Learn More: How a Financial Advisor Can Help You Navigate Retirement Decisions

Investing for and in Retirement:  

Risking your money during or before retirement is a significant concern, whether it's through spending or investing. It's essential to remember that, when it comes to investing, risk isn’t something to fear—it's something to understand. 

As you approach retirement, investing brings both hope and the potential to recover losses due to steady paychecks. Saving and building wealth are crucial parts of your retirement planning. One of the most critical questions to consider is, "How much do I need to save to last throughout my retirement?" Don’t forget about inflation and its impact on your savings. Inflation can erode retirement funds that are not invested or exposed to risk. 

Shifting your mindset to focus on investing for retirement is vital, especially since you have more at stake. Every investment carries some level of risk, but when approached strategically, that risk can become a powerful tool for wealth building. While investing can help grow your money, it's important to slow down as you near and enter retirement as part of your overall strategy. Remember: "Don’t be a forced seller in a down market." 

https://www.youtube.com/watch?v=C3vBvJVuYS8

Learn More: Financial Independence Starts with Smart Investing: Are You Taking the Right Risks?  

Retirement Strategy and Taxes:  

Taxes don’t disappear when you retire, so it’s important to think strategically about them to lower your overall tax bill. Reducing your tax burden throughout your lifetime can significantly improve your financial situation.  

Required minimum distributions (RMDs) start at age 73, forcing you to withdraw money from your traditional IRA and 401(k). Since these accounts are funded with pre-tax dollars, you’ll owe taxes on those withdrawals, which can create uncertainty about your tax liability. If you're in this situation, consider a Roth account or a Roth conversion. This approach allows you to pay taxes now at a known rate, helping you avoid potentially higher tax rates in the future. While it may seem irrelevant today, you might find your tax situation more challenging when withdrawals begin. A Roth conversion can also be beneficial if you intend to pass money on to your children. Taxes are everywhere, whether we like them or not, so make sure you are intertwining your retirement strategy and taxes.  

Learn More: The Hidden Threat to Financial Independence: Retirement Taxes

Retirement Strategy and Healthcare:  

Healthcare can be an afterthought, one where we take for granted our health or healthcare plans provided by employers. The world of retirement comes with its own set of healthcare plans. Although navigating them can be tough and stressful, know what plan is right for you, considering all the unknowns.  

Medicare is the primary healthcare provider for retirees, so it’s crucial to understand your benefits and where Medicare may fall short. Enrollment includes three months before the month of your birthday and three months after your birthday, with another final opportunity in the fall.  

Learn More: Planning For the Medical Costs You Don’t See Coming in Retirement

Conclusion:  

Adopt a strategic mindset when it comes to retirement. Instead of hoping for a positive outcome, take the initiative to plan for it. Change starts with you and your commitment to achieving the retirement of your dreams, rather than merely expecting everything to work out as it always has. Prepare yourself for all possibilities, and you will see the many blessings that come from this shift in mindset. This January, let’s get you ready for retirement!  

Schedule A 15-Minute Phone Call

Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and 210 Wealth Management, Inc., d/b/a 210 Financial makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that 210 Financial may link to are not reviewed in their entirety for accuracy and 210 Financial assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from 210 Financial. For more information about 210 Wealth Management, Inc., d/b/a 210 Financial, including our Form ADV brochures, please visit https://adviserinfo.sec.gov or contact us at (309)263-1333. 

HAPPY NEW YEAR! It’s officially 2026, and we are filled with optimism about what this year can bring. As we embrace this fresh start, let's adopt a new mindset towards retirement together. Even small shifts in thinking can help us navigate lifestyles and drive ambitions. 

Key Points – New Year, New Retirement Mindset 

• Meaning & Purpose in Retirement  

• Growth & Curiosity Mindset Shift Towards Retirement

• Financially Conscious about Retirement

Meaning & Purpose: 

Plan for your retirement with a sense of meaning and purpose. Having a reason behind your actions—whether it's saving or learning—adds intention to your preparations. This can make the process feel more rewarding, even when it gets challenging. 

Once you retire, it’s essential to find meaning and fulfillment in life beyond your career. Retirement should be seen as the icing on the cake—a time to relax and enjoy the next chapter of your life. However, this shift can be stressful; many retirees discover that once the excitement of a permanent vacation fades, they are left with a sense of emptiness.  

Retirement represents a significant lifestyle change, bringing both advantages and challenges. It’s crucial to ensure that you continue to find meaning and purpose in your life after leaving the workforce. 

Learn More: Adjusting to Retirement

Growth & Curiosity:  

Learning should be at the core of everything you do. Policies and procedures are constantly changing; your approach to them can help your finances. When you first consider retirement, the numerous changes and new information to learn and implement can feel overwhelming. However, adopting a mindset that is eager to absorb knowledge is beneficial to you. Consult with trusted financial advisors and research the options that are best for you. Stay curious about everything, ask questions, and commit to lifelong learning.  

Learn More: 7 Back-to-School Retirement Strategies  

Financially Conscious:  

Money is a complex topic, often acting as a double-edged sword. A retirement mindset encompasses various aspects, but finances are typically one of the first things people think about. Although conversations about money can be challenging, they are necessary for planning a successful retirement and ensuring you have a financial strategy to sustain you throughout this phase of life. 

1. Income Planning: Having an income plan is more important than ever with increased life expectancy and, therefore, longer retirements. Have a plan in place to help you know how much you will need to have saved or invested to last you through retirement. A budget is a great start and can help you navigate where your money is going so you can prepare for retirement.  

2. Investment Planning: This is an important aspect of income planning, especially when it comes to preparing for retirement. Find a retirement account that will work for you and give you the return you need while managing your risk. Enjoying your retirement greatly depends on strategically planning your investments to maximize your returns.  

3. Tax Planning: Taxes play a significant role in retirement planning and managing your finances. It's essential to consider what your tax bracket will look like during retirement. Don't only think about taxes once a year and then disregard them. Proper planning can help you save money in the long run.

4. Healthcare Planning: Your health is your wealth, and this statement holds true for your retirement as well. While we all hope to remain healthy and never think about potential health issues, it's important to be realistic. As we age, complications can arise that lead to increased healthcare costs. These may include long-term care or the loss of health insurance coverage provided by an employer. Therefore, planning for your retirement should include considerations for your health, ensuring that you are well-prepared in case any health issues arise.  

5. Legacy Planning: Consider what legacy you want to leave behind for your grandchildren or charities. Proper planning ensures that your money and assets are allocated according to your wishes. Don’t wait to establish your legacy plan; having one in place now can help reduce stress for both you and your loved ones.

Don’t plan your retirement alone! Consult with your financial advisor, who can guide you through the five key areas of retirement planning. Having the right mindset is crucial; you can enter this new chapter of your life with confidence, knowing that you are prepared to navigate the challenges ahead.  

Learn More: Want to Retirement in the Next 5 Years? Here’s What Your Need to Know

Conclusion:  

Cheers to the new year and the chance to embrace a fresh mindset! Your retirement planning journey should be a reflection of your unique story. This is your opportunity to create the narrative you desire. Focus on defining your personal retirement goals and make a plan for 2026 that transforms those goals into reality. 

Schedule a Complementary 15-Minute Phone Call

Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and 210 Wealth Management, Inc., d/b/a 210 Financial makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that 210 Financial may link to are not reviewed in their entirety for accuracy and 210 Financial assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from 210 Financial. For more information about 210 Wealth Management, Inc., d/b/a 210 Financial, including our Form ADV brochures, please visit https://adviserinfo.sec.gov or contact us at (309)263-1333.