As you’ve seen throughout this series on common financial conflicts, navigating these issues can be challenging, especially when faced with critical decisions that impact your long-term well-being. 

That’s why it’s so important to have fiduciary advisors by your side. Over my three decades of serving clients, I’ve encountered a wide variety of common financial dilemmas. Each conflict is unique, yet a solution can always be found through strategic planning and informed decision-making. 

In this blog post, I put my Conflict Solver hat on once again and share insights into Financial Conflicts 7–9. 

As a reminder, the conflicts covered here and in Part 1 and Part 2 of this series focus on people who are a bit older—either they have firmly established themselves or are close to retirement. In future posts, we’ll take a look at some common questions I get from clients who are more in the just-getting-started phase of life.

Let’s get going. Here are Financial Conflicts 7–9 of this series: 

 

Financial Conflict 7 – What if I don’t like retirement?

 

Dear Irvin,

I’m nearing retirement age. and I’m torn about a lot. I’m afraid of losing my identity. I don’t know what I should be doing—I don’t even know if it’s the right thing to retire. Now don’t get me wrong—I’m looking forward to more sleep and more free time, but I’m not exactly raring to go for retirement. What’s your best advice for someone in my situation? 

—Raymond

 

I’m so glad you asked that, Raymond, because it’s actually a very common question. Retirement can be a wonderful thing, but it can be scarier than a top-notch horror flick. In fact, this financial conflict reminds me of my friend and client, Kenneth. 

When he retired as a lawyer, you know what he told me years after retirement? He said that while he loved his career, he was having the most fun of his life right now—in his 80s—writing poetry! And that’s not even mentioning that he’s finishing up writing a book, too. Poetry and tending his garden are his true passions. He is living a fulfilling life focusing on what he loves to do most. My advice in this arena comes down to four things: 

  • Make sure you are indeed financially secure and have the means to support the life you want. We can help crunch the numbers and make sure you have the connections you need to succeed.
  • Live your passions. This is the time to do more of what you want. You just have to do it. Nothing is holding you back now!
  • Connect with younger folks. One of the best ways to stay young is to surround yourself with lots of young energetic people. You may find them in your neighborhood, in volunteering, in areas that you believe in, engaging in your hobbies or interests that you are passionate about, or memory building activities with your family. Remember, as a more mature person, you bring wisdom and experience. They bring the fire in their belly and lots of energy. It’s a win-win for all parties.
  • Don’t stop if you don’t want to. Many people find fulfilling postretirement careers that don’t have to revolve around just making a buck. It could be volunteering at a museum or something that aligns your passions with helping others to keep you young and vital.

 

Financial Conflict 8 – How do I deal with inflation?

 

Dear Irvin, 

I’m going crazy, between the price of gas and the price of real estate and the price of nearly everything. Inflation is really getting to me. How do I keep up? 

—Elizabeth

 

Inflation is the silent destroyer of wealth. I get this question all the time with clients and friends. The best method to stay ahead of inflation is to conduct a thorough search to find a trustworthy team of fiduciary advisors to work with you and your family. 

The goal is to develop a diverse portfolio of assets to deal with the ravages of inflation. It’s worth the time and effort to have a firm that will be your advocate and will partner with you to deal with the changing economic developments around the world.

 

Financial Conflict 9 – When should I start taking Social Security?

 

Dear Irvin,

I’m at the age where I can start taking Social Security. I’ve read about advantages and disadvantages to signing up for it at different times. When do you suggest someone takes Social Security? 

—Michael

 

Your decision comes down to several key factors, Michael. Outside income streams and longevity should be your primary concerns. Uncle Sam allows you to start taking Social Security retirement benefits once you turn age 62. However, you might want to think twice about doing that because your benefit will be reduced by 7–8% for each year you start claiming benefits before full retirement age (FRA). Currently, FRA is age 66 or 67 depending upon when you were born. 

Getting back to your question, Michael, if you have retirement accounts, a taxable account, a pension, or savings in the bank to live off until FRA, that’s often your best route. If you want to truly maximize SS benefits, the latest you can wait to claim benefits is age 70. For every year you wait beyond FRA, your benefits grow by 8 percent. 

In terms of longevity, if living a long, prosperous life runs in the family, you might want to consider claiming at age 70 since you will be getting your highest benefit. On the flip side, if everyone in the family has passed on by age 80, you might want to claim your benefits at your FRA. 

A note to remember: if you do wait until age 70 to claim SS benefits, Uncle Sam won’t magically start sending you checks the month of your 70th birthday. You still need to call your local Social Security office or go online to start the benefit claiming process.

As we wrap up this series on common financial conflicts, it’s clear that the challenges you face as you approach or settle into retirement are both varied and complex. From determining how to be fair when helping children and grandchildren financially to preparing for a financial emergency to deciding when to take Social Security and more, each decision has lasting implications for your financial well-being. However, with the right guidance and a tailored approach, these conflicts can be managed effectively. 

The key is proactive planning and working with a trusted advisor who understands your unique circumstances. By addressing these issues head-on, you can move forward with confidence, knowing that you’re well-prepared for whatever lies ahead.

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