Retiring with $1 Million? Here are 5 Tips to Help You Thrive

By in ,
Retiring with $1 Million? Here are 5 Tips to Help You Thrive

Retiring with $1 million in savings is an impressive accomplishment, but it’s important to remember that it’s just the beginning

Having a significant nest egg gives you the opportunity to live comfortably in retirement, but it also comes with a certain level of responsibility. In order to ensure that your savings last throughout your retirement, there are certain things you must do. 

From creating a plan and consulting with a financial advisor, to diversifying your investments and taking advantage of tax breaks, you’ll be able to make the most of your savings. The following small tips will help allow you to live the life you have always dreamed of in retirement.

Here are five key steps you should take when you have $1 million saved for retirement. 

Asses Your Needs

Whether $1 million is enough money to fund your retirement lifestyle depends on your lifestyle needs.

Depending on your financial situation, you may be able to live comfortably with $1 million, or you may need more than that to feel secure. Only you can determine how much money you will need in retirement, and it’s important to consult with a financial advisor before making any decisions about how much to save.

Some people plan to travel while they’re retired. Others plan on staying home and enjoying time with family and friends. Some people have hobbies that cost money—like golfing the best courses overseas and boating. While others prefer more inexpensive hobbies like gardening or reading books.

It’s impossible for us to say exactly how much money you’ll need for the rest of your life, but we can tell you that the two biggest factors are: how much money you already have saved up and how much of a lifestyle change you plan on making when you retire.

A great place to get started is with our free online calculators. From there you should be able to get a grasp of where you are and what steps you need to take to watch your money grow.

Take your Health into Consideration

When planning for retirement, it’s important to consider the lifestyle you want to live. One of the most important factors in this is your lifespan. No one knows exactly how long they will live, but what we do know is that our lifespan is a reflection of our choices and behaviors.

If everyone in your family tree has lived to be over 100 and you pride yourself on living a healthy lifestyle, then you can estimate that you’ll likely live longer than the average retiree. However, if you find yourself in poor health, have chronic health problems and/or have short-lived ancestors, then you might prepare for a shorter lifespan.

Diversify Your Investments

No matter how long you think you’ll live in retirement, you want to make sure you diversify your investments. Getting too comfortable with investing conservatively will cost you. Even if you estimate that you will have just 10 years of retirement, it’s a long time to stretch your money once you factor inflation and taxes.

If you invest conservatively, you won’t be able to keep up with the cost of inflation. This is one of the biggest reasons why financial advisors recommended having a moderate nest egg in stock. This of course depends on your risk tolerance.

Check out our top ways to help mitigate risk in retirement here.

Social Security Strategy

Social Security can be a valuable part of your retirement strategy, but it’s important to structure your benefits in a way that will maximize your payout.

You can claim benefits as early as age 62. However, if you choose to do this, you would be permanently reducing your payout by roughly 30%. If you wait until 70 to claim your social security benefits, your benefits will increase by 24%. 

One of the most important factors is whether or not your spouse will be eligible for benefits, and how much those benefits will be. Another factor is whether or not your benefits will be taxable. You should also consider the possibility that Social Security benefits may be cut in the future.

The good news is that these variables can be discussed by a financial advisor. They can assist you in answering questions regarding your possibilities for retirement and benefits.

Don’t Overlook Insurance

You’ve worked hard and saved up a nice nest egg. You’ve got your retirement plan in place, but what about your insurance?

Unfortunately insurance is an area that is oftentimes overlooked. One important step in long-term retirement planning is having the right insurance in place. Although retirees aged 65 and older are entitled to Medicare, that government insurance program doesn’t cover all healthcare costs. 

Not so fun fact:

Without insurance, long-term care costs can be exceedingly high. In 2023, you can expect to pay the following monthly costs:

  • $5,148 for a home health aide
  • $1,690 for adult day care
  • $4,500 for assisted living
  • $7,908 for a semi-private room in a nursing home
  • $9,034 for a private room in a nursing home

You’ll also want to consider long-term care insurance, which is not covered by Medicare. It’s important to note that other personal insurance, such as an umbrella policy, are also not covered by Medicare.

It’s a mistake that happens all too often. Make sure you’re not putting your $1 million retirement nest egg at risk for claims that are best left to insurance coverage.

Final Thoughts

Hiring a financial advisor to work with you for your retirement needs is a smart move. They will help you create a comprehensive financial plan tailored to your individual goals and needs. The best Financial Advisors can also help you stay on track and make adjustments as necessary. 

At CKS Summit Group, our trusted experienced advisors have the knowledge and expertise to navigate the complex world of investing and can help you make informed decisions to ensure your money is working hard for you. 

Additionally, we can provide valuable guidance on important retirement topics such as Social Security, Medicare, and long-term care planning. In short, working with CKS Summit Group’s team of financial advisors can give you peace of mind and help you achieve the retirement you desire.

Ready to get started? Contact us today!