Retirement Income Planning in Denver
Denver is paradise for retirees. The four seasons offer outdoor options for entertainment for healthy activities all year. Your retirement income planning advisor in Denver sees many dreams of retiring here, but not all of them come true. So, to keep you on the right track, let’s look at a three-step planning process that considers the details of retiring in Denver.
#1 Building a Retirement Vision
Although most people have a vague sense of what they want to do once they ditch the 9 to 5, few have a clear retirement vision. So, it is this vision that keeps your savings on-track and helps you resist making withdrawals from your retirement accounts.
You may have noticed that many people retire essentially “on vacation.” If they went to Mexico for 3 weeks on vacation every year, then they retire to that same area of Mexico for 6 months of the year. This decision evolves from their limited vision. Although they may be happy in their retirement, they seldom even imagined, let alone considered, anything else.
Stop trying to imagine retirement as an extended vacation.
Chances are, for several months after you retire, you will feel like you are on an extended vacation. For those who pursued professional careers, especially high-income earners, an extended vacation soon loses its appeal. Carefully define your values and vision for your retirement to paint a picture of how you will spend your time.
This foundational exercise helps prioritize spending, savings and portfolio decisions because your vision is your inspiration to push toward your retirement goals.
#2 Retiring in Denver
Every city is unique. A decision to retire in Denver does impact your overall retirement strategy. Consider these aspects of living in Denver.
- Housing – Do you plan to retain your current home? Do you need to downsize before or after you retire? According to Trulia, median house costs in Denver are over $425,000 and then add property taxes.
- Cost of Living – The cost of living in Denver is above the overall U.S. average and other cities in Colorado. This makes sense to anyone living in Denver… you get what you pay for!
- Tax Planning – Tax laws and fiscal policies evolve. This adds complexity to planning for retirement, but Colorado is a tax-friendly state for retirees. Retirement income is only partially taxed. Plus, there are large tax deductions for seniors in Denver. Check the Colorado State website. This is where a retirement income planning advisor in Denver comes in handy.
#3 Your Retirement Plan
With your vision in mind, and as you consider the unique aspects of Denver, then you have a foundation for a financial plan. Now, there are just two more steps to developing that solid financial plan.
- Know What You Have – To know what savings options you have, you need to know the starting point. Assess your accounts to determine your net worth. Then, you can make adjustments to fit your plan.
- Learn Your Options – Make adjustments to your portfolio to maximize savings and meet your retirement goals.
The Bottom Line
Preparing for retirement is an ongoing process. Regular assessments by your retirement income planning advisor in Denver make sure you stay on track to have the lifestyle you envision.