11 Ways to Know A Spouse Planned Properly For Retirement

It’s not unusual for one person in a marital relationship to do the retirement planning. Perhaps you’ve given your spouse the reins on retirement because financial planning just isn’t your thing. Of course, your partner has both of your best interests in mind, but are you certain they’ve been planning both of your retirements properly? There are a lot of different avenues when it comes to retirement planning, and all the choices can muddy the waters. Even if you’re in the background part of the planning, it’s important to make sure your spouse is on the right track. How can you tell? Check out 11 ways to know if your spouse has been planning properly for retirement and answer the question for yourself!

1) They Stick to A Budget

Creating a budget is one of the first steps to ensure a successful retirement. This shouldn’t happen right before retirement or after you’ve retired. Budgeting and being mindful about daily spending habits is important throughout life. A retirement budget can be implemented at any age. The sooner you pinpoint an amount you want to save every month, the bigger your nest egg will be by the time you reach retirement age. How is your spouse with money? Does he or she spend frugally, with reckless abandon, or somewhere in between? It’s imperative you both are on the same page when it comes to what you spend your money on and where your priorities lie. Check in with your partner and consider creating your retirement budget together. When your Social Security benefits do start arriving, the budget should be adjusted to the new monthly income.


2) They’re Working with a Financial Advisor

Planning for retirement alone is overwhelming. Unless your spouse is super-investment savvy or works in the financial field, it’s a good idea to talk with a financial advisor about retirement planning. There are a lot of options and these advisors are professionals who specialize in making sure you’re set for life. That being said, you also want to make sure you work with a reputable company and with an advisor you can trust. It’s a good idea to do as much research as you can prior to meeting with an advisor. Be as informed as possible about the options and ask the right questions about every opportunity presented. Different stocks, bonds, mutual funds, and investments come with different fees. Be sure your spouse has exhausted all the options and inquired about initial purchase fees, maintenance fees, and the investment’s flexibility.


3) They’ve Got a Strong Portfolio

The financial planning part of retirement is tricky – there’s no doubt about that. That’s why working with a financial advisor who specializes in retirement is key. Ask questions about what investments your spouse has made and stay informed about what’s going on with your investments. A strong portfolio should include a mix of stocks, bonds, mutual funds, and perhaps an annuity. It may be easy to get carried away, so a good general rule of thumb is having no more than 5 or 6 different investments. It’s also imperative to know each investment inside and out. If you don’t really know where the money is going or coming from, it’s impossible to truly tell if that investment is necessary. Make sure you know exactly why you bought each investment, what the risks are, and what you’re getting in return.


4) They’ve Got Savings

There’s no substitute for money in the bank. Having a stash of liquid cash is a sure-fire way to go into retirement feeling relaxed. Remember though, this money isn’t for your daily spendings and bills. Consider it as a rainy-day fund. You’ve got it in case of emergency, but it shouldn’t necessarily be used often. There will likely come a time during retirement when your Social Security benefits don’t cover the cost of something. Maybe there’s something you really need that isn’t part of your pre-crafted budget. A strong savings is invaluable to retirees. It’s there if you need it immediately, and that’s important. A large chunk of cash that not tied up in your portfolio, stock, bonds, or other investments is a crucial part of a well-thought out retirement. This means you can take that money whenever you want. Have you and your spouse both got a cushy savings?


5) All Their Eggs aren’t in One Basket

The first four points of this article are extremely important. They aren’t the type of options that you can pick and choose from. Every one of these boxes should be ticked. Making sure your eggs aren’t all in one basket kind of summarizes the first four points. To make sure all your bases are covered, your spouse should have a strong savings, a mixed portfolio, a trusted financial advisor on hand, and a budget. Keeping your money spread out in different areas will ensure that you’ve got a Plan B (or C, or D) in case the market takes an unexpected negative turn or you had to tap into your savings more than you’d planned. Maybe you’re having a tough time sticking to the budget you created. You can use any of the previously mentioned ideas to supplement your income. Keep your options open so you’re never facing a dead end.


6) They’re Looking to Downsize

You probably hear this word mentioned a lot with retirement. It’s because it’s a very important piece of a savvy retirement plan. It’s also a part that some overlook or can’t be bother to do. Downsizing means ridding your life of anything that doesn’t fit your retirement lifestyle. The crux of downsizing is usually your house. Most older couples who’ve had children live in a house find it becomes too big once their kids grow up and move out. The money spent on maintenance, electricity bills, and insurance are higher than necessary. The solution is downsizing, which means moving into a smaller house that’s more cost effective. While it may be hard to put your family’s house up for sale, it’s necessary reduce your expenses and live within your means. Make sure your spouse has one eye on the housing market and is making plans to sell.


7) They’re Looking to Relocate

Downsizing doesn’t just mean moving down the street to a smaller house. It could mean moving across state lines or even across the country. It’s important that your spouse understands that the city or state you live in now, may no longer be affordable once you stop working. The paychecks you’ve become accustomed to are going to halt. While you will receive Social Security benefits, know that these are much lower than your normal salary. Therefore, the life you were once able to afford may not be so attainable in retirement. Don’t panic. Lots of retirees avoid this financial strain by downsizing and relocating. Real estate costs and taxes are not the same everywhere. There are some states (Arizona, Florida) that are well-known for welcoming seniors who live on a strict budget. Keep an open mind about location as you make plans to downsize.


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