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Comprehensive financial planning has been the cornerstone of Bridgeworth Wealth Management since our inception in 2008. As a result, we routinely see clients successfully transition from the accumulation of assets to the disbursement of life savings while finding a new sense of purpose in their retirement years. While retirement typically elicits thoughts of happiness, freedom, and endless opportunities for what can be accomplished with an open schedule, it can also surface unique financial fears. We want our clients to face and defeat these fears head-on before relinquishing their paychecks. Through proper discipline, insight, and partnership, we create plans to help our clients meet their financial goals. Our objective is for clients to not only make it to that target retirement date but to thrive during their retirement years. If retirement is three years or thirty years away, here are two common fears and ways to overcome them:

Will I run out of money?

Peniaphobia is a documented fear of poverty or running out of money. It is natural for this fear to surface as you step into this major life transition of no longer actively earning income. Clients frequently ask, “How do I make sure I don’t run out of money in retirement?” To appropriately answer this question, proper planning should be done before retiring. An essential piece of your retirement plan is discovering 1) how much money you’re bringing in and 2) how much you spend each month. While some prefer to get in the weeds and account for every penny spent, that’s not always necessary. Understanding your personal finances – roughly how much income hits your bank account and how much exits every month to cover expenses – provides the information you need to know if you’re running a deficit, surplus, or breaking even. This knowledge is power. It lets you discover if you need to cut spending or increase your income to meet your goals. If you’re running a surplus or breaking even each month, it gives insight into how long it will take to reach your goals or informs your income needs for retirement. Once you understand what comes in and goes out, you can create a plan for your retirement savings and ease the fear of not having enough.

What will I do once I retire?  

Did you know that Thaasophobia is the fear of sitting still, being idle, and being bored? When facing retirement, this fear is not as obvious as running out of money. One major pitfall in retirement planning is not always knowing what you will do in retirement. It is natural not to know what to do if your days are no longer filled with meetings, projects, and work travel. Escaping the daily grind is usually the primary motivating factor for retirement, as removing job stress can provide relief. Thinking through how you will spend your newfound freedom is essential to a successful retirement, and we recommend you “try-out” retirement before officially completing the retirement paperwork. This trial run may look like an extended vacation, decreasing your hours over several months, trying different hobbies, volunteering, or creating a replacement “schedule” for yourself. If retirement is still over the horizon and these suggestions aren’t feasible, focus on developing skills and hobbies outside of work that you enjoy in your free time. Identifying those things you are passionate about and understanding how you like to spend your time will help you both now and in your retirement years.

Retirement involves so much more than stepping away from the workforce, impacting more areas of your life than the 8-5 Monday-Friday. As exciting as it is, retirement is a significant life transition, and planning for it will help ensure it goes smoothly. Regardless of your age, when you expect to retire, or what your estate plan looks like, it’s never too early to meet with a financial advisor to help provide guidance on saving and investing in what you value most. Bridgeworth is a dynamic, experienced team of professionals passionate about helping our clients live with confidence and clarity. If you would like to speak to a Bridgeworth advisor about financial planning, please visit our website to learn more and schedule a call.

Bridgeworth Wealth Management is a Registered Investment Adviser.

Bridgeworth is now a part of Savant Wealth Management as of 11/30/2023. Savant Wealth Management (“Savant”) is an SEC registered investment adviser headquartered in Rockford, Illinois.