Lundervold Financial’s
5 Steps to Retirement Planning Seminar

Learn 5 common mistakes people make when planning (or not planning) for retirement in this seminar by
Lundervold Financial of Twin Cities, Minnesota.

5 Steps to Retirement Planning Seminar

You’ve been taking steps since you were an infant. From those wobbly first efforts to balance your forward movements to the day you graduated from school, every step has been carefully plotted. Yet, when it comes to retirement, many stop planning. They stop taking the steps needed to reach that goal.

But that is not you. You are taking the financial planning steps to help make your golden years shine. You are looking for a clear path. Informative  retirement seminars take a holistic view of your financial future. The “5 Steps to Retirement Planning” seminar will show you strategies you can consider for the road ahead.

Here is a preview of what we will discuss in this seminar by Lundervold Financial of Twin Cities, Minnesota. These are 5 common mistakes people make when planning (or not planning) for retirement.

Step 1: Map Out a Retirement Strategy

When planning a vacation or road trip, most people will check a map. Some will plot out a detailed course while others will review the roads in general. Either way, both are mapping out the trip to ensure they get to their destination.

Regardless of how detailed you are in your retirement plans, if you do not map out a strategy, you might not reach the destination you seek. For most people, their retirement strategy consists of a 401k plan.

Yet, the 401k alone may not be enough. Aside from the IRS limits on contributions, inflation and plan fees  could reduce yourinterest credited, reducing the amount you will have to live on in retirement.

This retirement planning seminar will help you understand how to get started to take balanced steps for saving and investing enough to provide you a strategy for the the retirement you want.

Step 2: Determine How Much You Need to Save

As with a vacation, to know the path to the retirement you seek, you must know the destination. In this case, the destination is a specific amount you will need to live on. It is not some mystical, unknown figure; rather, it is a concrete number, an exact amount needed to serve you well in your later years.

How can you possibly know exactly how much is needed?

Naturally, life can take unexpected turns, so knowing the exact amount is not alwayspossible, but we can help you get close. You can determine a minimum amount needed to plan for you and those you love. By putting an exact figure on your retirement, you will be encouraged to live within your means. This is one important step to the future you want.

In this part of our retirement seminar we will explain how we help you calculate what you need. We will show you how to take steps now to help clear your path.

 

Step 3: Estimate Health Care Costs in Retirement

We all know that health care costs are growing at an alarming rate. We also know that as we age, we have a greater need for health care, which is a huge portion of retirees' budgets. In fact, Fidelity estimates the average retired couple age 65 in 2020 may need $295,000 for health care in retirement, and that does not include long-term care.

Medicare Part A covers hospitalizations but still has a deductible and coinsurance. Part B covers certain non-hospital medical visits but also has a deductible, coinsurance and a monthly premium. The same goes for Part D, which covers medications. And should you want to avoid the out-of-pocket costs, you can purchase what is called a Gap Plan. Either way, you will likely pay something.

The level of coverage and potential costs you will pay can be directly tied to what you can afford. If you do not plan for health care costs in retirement, you might be faced with higher than anticipated expenses.

Step 4: Account for Inflation

Inflation. Few understand it and fewer like it, but the fact remains that inflation could eat at your retirement savings. Inflation results when prices for goods and services in the marketplace increase, eroding the value of our money. Thus, something that costs a dollar today may cost $10 in several years.

As our investments grow, we tend to look at the total and think we are well off. But if we account for inflation, that figure may not seem so great.

In order to make sure we are on the path to retirement confidence, we must take this vital step ... accounting for inflation. How can we do this?

On average, inflation grows at a rate of 3.22% per year. While this may not seem like much, if it remains consistent, it amounts to a doubling of prices every 20 years.

In this step of the seminar, we will explain how we account for inflation when putting together a retirement plan.

Step 5: Plan for the Possibility of Long-Term Care

Even people who calculate how much they will need for healthcare costs in retirement often miss planning the need for long-term care (LTC). Yet, fully 70% of seniors may need LTC at some point, according to SeniorLiving.org.

Now. A word of caution. If you do not have enough insurance or the right plan in place for LTC, the state will foot the bill via Medicaid. But once you pass away, federal law* requires the state to collect from your estate. Thus, anything you planned to leave to your loved ones, including your home, may be seized and sold to cover the costs of your long-term care.

If you plan for LTC but do not need it, your family’s inheritance could be larger; but if you do not plan, they may inherit nothing. Remember too that you could have a wider range of  LTC options if you are properly covered.

In the 5 Steps to Retirement Planning seminar, we will show you how to incorporate LTC into your financial plan so that the road ahead helps take you exactly where you want to go.

Attend a Seminar to Learn More About 5 Steps to Retirement Planning

It appears no event on this topic is scheduled right now. Use the "Ask Us a Question" form below to find out when our seminar is. Or, call us at (651) 209-1906. We'd love to talk!

*Lundervold Financial LLC does not provide tax and legal advice. If you do not have a tax advisor or attorney, we can help direct you to licensed and qualified professionals close to our office in Minnesota or near you if you live elsewhere.

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