Financial Advantages & Dis-Advantages To Being Single

Being single always has its challenges, but also its advantages. Even more so when you are in retirement. You typically have on income to pay the mortgage, to pay the bills, and to take care of the kids if that was your path. Through all that, you still managed to save, but now that you are close to retirement, it is time to take care of those assets so that you can enjoy retirement. These six things will help you as a single person entering retirement have more peace of mind.

Understand your discretionary expenses and non-discretionary expenses.

Pick through your expenses and figure out which expenses you must need to keep the day in and day out to make sure you can pay the bills, keep the roof over your head, and put food on the table. I call that income you need to live. Then calculate how much income you need to come in day in and day out to be able to have a life, which is your non-discretionary expenses. Such as going out to dinner with your friends and travel.

Create your income for life to match your expenses.

Now that you know your expenses, you can create your income to match the expenses for your discretionary expenses and your income to match your non-discretionary expenses. Typically, you want to make sure that your Social Security and pension income should cover your discretionary expenses. If it doesn’t, you may need to make your own private pension to help supplement.

Get help

Don’t be afraid to get help with your financial planning, regardless of how much you have saved. Just like you don’t self-diagnose yourself (or at least you shouldn’t), the same thing applies when it comes to retirement planning. Don’t be afraid to ask for help when it comes to putting a retirement plan together.

You are busy, find tools that can help you

Being single means you have to do everything on your own. Find tools that will assist you in your investments and retirement plan. We use a system called Wealth Guard that helps monitor your retirement assets from major market corrections.

Understand your Social Security options.

If you were married, there still may be options when it comes to Social Security for yourself. With some rule changes that came in late 2015, some options have become limited to non-existent. For the time being, Social Security has become extremely confusing for previously married singles. You can talk to the Social Security Administration or your financial advisor for more details.

Get your documents in order.

Just because you are single doesn’t mean you shouldn’t have your beneficiary forms or wills, trust, or health care directive in order. It is actually more important because if you are married it automatically transfers to the surviving spouse before moving on to the estate.

Although retiring and being single may be scary and may provide some challenges, it also can be more simplistic when it comes to retirement. You don’t have to come up with strategies for the surviving spouse, but at the same time, you need your money that you have worked hard for to last as long as possible.

Video Transcription

Hi, Vince Oldre Certified Financial Planner with Assured Retirement Group. And I want to talk to you, all the single people that are out there. Because I know it, it can be tough when it comes to creating your own retirement plan all on your own. And it can be hard to get a lot of advice as a single person. So what I always tell people that are single when they come into my office, is we really do need to look at your expenses and start to create a return plan around your expenses for making sure that your retirement plan can be coordinated with your Social Security, your pensions, and making sure you’re using the right tools that are out there for you. So, first things first, let’s talk about discretionary expenses versus non-discretionary expenses. Discretionary expenses are things that I call to have a life, meaning to travel, to go out to nice dinners and meet up with your friends for happy hour, and to make sure you’re getting gifts for the grand kids if you have them, or even your own kids. Those would be discretionary expenses.  But non-discretionary expenses are the bills. Those are the things that you need to have. Especially like your house, the utilities, food, anything that you have a bill for you’re going to have to have an income for. That is your non-discretionary expenses. Now most of you would like to have your non-discretionary expenses always covered by some guaranteed like income. So that is why we look at things that will give you that type of income. So your pensions or private pension or Social Security. Those are all things that will give you the income to pay those bills.  And typically we see a lot of people are okay with having variable like income to cover the discretionary expenses, so money to have a life. So money to have a life or again, to go out and travel and to go out to dinner and buy the gifts for the kids and grandkids.  Now that we know the difference between the discretionary and non-discretionary expenses, then we need to make sure we have the income to maintain all those expenses. And then we have to make sure we can get the help that we need. Now you don’t always need a financial advisory, but more often than not, what we find is that a financial advisor will give you some things that you might not have thought of to make sure that you’re getting the most out of your dollars that you can get. And what we tend to see is that we tend to use different tools than what you might use. So, you need to have tools that will help you. But then we also need to make sure that we’re looking at Social Security. Making sure that Social Security is going to be part of the plan as well. But last but not least, is making sure you have your documents all in order. And we all know a famous person that passed away recently, Prince, and none of his documents were in order. Now you might not be as famous as Prince, but it’s still important for you to have all your documents in order to make sure that your assets go to the right people, they don’t go to your estate so that it’s just a mess. You want to make sure that these things are in order. Make sure you have a power of attorney and a healthcare directive so someone knows what to do if you get in trouble, meaning health wise. All these things need to be in place. Now I wrote an article here for you that will help lay out these things a little bit better then this video. So please feel free to click on the article or click on my blog here. But as a single person, I really do hope that you get the help that you need. It is a little bit harder since you only have one income. But at the same time, you don’t have as much for expenses.  So, we’re always her to help if you need our help. And if you have any questions, feel free to reach out. I’m more than happy to talk on the phone of through email. And as always, if you have any other questions when it comes to retirement planning, please send those in as I like to make more videos. If you’re not sure what to do or what to look for, you can always come to one of our retirement planning events. If you go to our events page on our website you can make sure to sign up for one there. As always, I want to thank you for watching and we’ll see you next time.

Financial Advantages & Dis-Advantages To Being Single
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