Wealth Planning Insights
Want to build emotional resilience into your retirement plan? Here’s where to start.
Abigail Gunderson CFP®, December 2024
Some of the most rewarding work I do is with clients who are in or approaching retirement. I get to see my clients pursue their passions without distraction, deepen their relationships with family, and use the wealth they have earned to make the world around them a better place.
That is not to say it’s easy work.
With more than 11 years of advising Tanglewood clients, my experience has shown me that the emotional side of retirement planning cannot be separated from the financial side. The math has to work, yes. But emotional resilience plays a huge role in making that math work. When you are emotionally engaged in your retirement plan, you manage your wealth… but you also make sure the right decisions are being made, and the right people are involved at every stage.
Emotional resilience can also be seen as the capacity to prioritize what truly matters. That means maintaining a financially sustainable lifestyle, organizing everything you will need when life catches you off guard, and building trust and confidence in the people who support you.
We are approaching the end of the year as I write this. But no matter when you read this article, consider it an open invitation to run down your own emotional resilience checklist to stay on track with your own retirement plan. Here are a few suggestions:
Consolidate and simplify what you can. Build your net-worth statement. How easy is it for you to access all your financial accounts? How many logins and passwords do you have to manage? No one has an easy, straightforward financial life. Throughout the course of your wealth-building years, you will inevitably have several banking, investment, and retirement accounts from different jobs, localities, and phases of your life.
Many of those accounts need to stay separate for good reasons. It is likely that your decumulation strategy will concentrate your wealth into different types of accounts to manage your long-term tax exposure. But you do not have to make it harder on yourself. Are there any accounts that you could consolidate? The more you can simplify and eliminate unnecessary accounts, the easier it will be for you and your advisor to manage your wealth as a unified whole.
That consolidation goes double for your subscription accounts. According to CNET, the average household sinks about $1,000 a year into subscription fees. That money adds up over time. I am not suggesting you cancel everything, but I would like you to think about how often you use your subscription services. For that matter, how much are you enjoying the services those subscriptions provide? Are they adding value to your life now, or is it a fee you pay because you might want the option to watch some shows on your “must watch list” or simply “too busy” to find the time to cancel them?
When you take control of where your money is located and how it is used, you lessen the cognitive load of managing your finances for the long haul. You build intentionality back into your finances.
Another way to build intentionality and emotional resilience is to check in with your team. Your advisor works with your estate and tax planning professionals. Are there any documents that need updating to better reflect your retirement plan and the legacy you want to create? Are your beneficiary designations up to date and consistent with your plans? How easy is it for you and your team to access the forms and information you need?
Verifying beneficiary designations is one of the simplest yet powerful steps you can take to secure your legacy. Ensuring that your designations are clearly identified and consistent with your overall retirement and legacy plan is more than just an administrative task–it is emotional reassurance. By taking the time to confirm that the right people will benefit from your life’s work, you gain peace of mind and clarity.
Your advisor and estate planning professionals can guide you through this process, making sure your designations reflect your intentions. Revisiting these decisions regularly with your team ensures they evolve alongside your financial and personal goals, further aligning with the legacy you wish to leave behind.
It might sound a little silly to call it “self-care” to talk to your advisors about your finances. But it can provide genuine emotional relief knowing that your loved ones are cared for and that your own financial path is headed in the right direction.
Proactive tax and investment planning is another way to build both financial security and emotional resilience. Collaborating with your wealth advisor and CPA not only ensures your tax situation aligns with your long-term goals but also reduces the stress often associated with tax season. Your advisory team can suggest tax saving strategies you were unaware of that are complementary to your values and philanthropic goals, or take advantage of lower tax brackets at retirement to further legacy goals for your heirs.
Think of it as an investment in your peace of mind. Knowing that your finances are in order and that you are taking full advantage of available tax-saving strategies can provide a sense of control and empowerment. Regular planning meetings can feel like an act of self-care, helping you navigate financial complexities with confidence and focus on what matters most in your life.
Finally, check in with your family. No one is an island, no matter how wealthy they are. Your partner should be an active participant in your retirement plan. Your loved ones should know what your intentions are. It is likely that some of them want to broach the topic with you but are worried they might upset you or say the wrong thing. Instead, invite them into the conversation.
The more trusted people in your life who understand your intentions, the more likely they are to support you on your retirement journey, act in accordance with your wishes and contribute to the legacy you have worked to build.
Whether you verify beneficiary designations, simplify financial accounts, or proactively manage taxes, each step builds resilience into your financial plan and creates a stronger foundation for your future.
If you aren’t sure how to navigate these conversations or would like to discuss your retirement plan in greater depth, contact your wealth advisor or schedule an introductory meeting by contacting us here.
Happy holidays!