Plan it
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Dreams of a retirement spent reading books, playing golf, shopping and spoiling grandkids can be ruined by debt and worrying about whether you will outlast your savings.

The first step to a fiscally sound retirement is planning. According to Steve Craighead, resident manager of Merrill Lynch in Roanoke, the planning should ensure that you will have the income you need, your income will stay ahead of inflation and your principle will grow.

With a plan in place, you can begin setting tee times and stockpiling books to read without a worry. “The key is making sure you have a disciplined approach,” says Craighead.

Now that you have a plan, do not assume that the money will grow on its own. Markets fluctuate, and your portfolio might need to be adjusted accordingly.

Edward Barnes, CFP, is a senior financial advisor at Barnes and Associates (a financial advisory branch of American Express Financial Advisors Inc.). “Clients need to come in once or twice a year to see if they’re on track,” he says. “Are they spending too much? Are investments doing as they should?”

Regularly reviewing your plan and making changes where needed can help you reach your goals.

More seniors are accruing debt now than at any other time in history. Unexpected medical costs and a willingness to use credit cards contribute to the growing problem. Plus, “seniors today are more active,” says Barnes, “and consequently they spend more money.”

And watch out for scams including “advisors” who may visits you at home and encourage you to sell stocks, which can have tax-related repercussions. “Always call the BBB,” advises Barnes. “Whenever you’re doing life changes, always check with your trusted advisor.”

—Andrea Mattioni



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