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How to Unlock Time, Money, and Fulfillment for a Breezy Retirement

2 mins read
Our goal is to give you the tools and confidence you need to improve your health and finances. Although we may receive compensation from our partner insurance companies, whom we will always identify, all opinions are our own. CoverRight Inc. and CoverRight Insurance Services Inc. (NPN: 19724057) are collectively referred to here as "CoverRight".

Considering dialing down your full-time hustle, becoming an empty nester, or riding into the sunset of retirement? If yes, you’ve arrived at the exact right place!

We created this guide with the goal of furnishing you with knowledge that will leave you feeling better positioned to manage your finances and unlock all retirement has to offer. Leveraging these five strategies, you can turn up the brightness of your future and make this next era your best era.

Strategy #1: Portfolio Risk Management

Portfolio risk management is an important and time-tested tool to fortify your future against the effects of market volatility and unexpected events. The practice is centered around the concept of diversification: by spreading investments across asset classes, you are able to mitigate the impact of any individual asset’s underperformance.

If you invest in many different things, whose performances are largely uncorrelated with each other, you will reduce your chances of losing a large sum of money in one fell swoop. For example, in 2008 the S&P 500 had a negative return of 37.00%, which, on a $100k investment would have resulted in an ending value of $63,000. Alternatively, if you had allocated just half of your funds to the fixed income, your ending value at the end of 2008 would have been approximately $84,120.

Don’t put all your eggs in one basket folks!

Strategy #2: Tax & Withdrawal Efficiency

Tax efficiency refers to strategies which minimize the negative impact of taxes on investment returns. Utilization of tax-advantaged accounts (such as 401(k)s, IRAs, and Roth accounts) is a popular and effective tax efficiency optimization strategy.

Withdrawal efficiency refers to coordinating the sequence and timing of withdrawals from retirement accounts (i.e., IRAs, 401(k)s, and Roth accounts) to maximize income. One popular withdrawal efficiency optimization strategy includes minimizing required minimum distributions (RMDs), which in turn keeps your tax liabilities low.

Retirable points out: “Certain funds will be taxed on retirement while others won’t.” Be sure to consult with a tax advisor or certified financial planner if you have questions about the tax implications pertaining to your personal financial situation.

Remember, if you budget aptly and plan ahead, tax and withdrawal strategies can help you protect your retirement treasure trove!

Strategy #3: Use a Retirement Calculator

Retirement calculators are your GPS for the financial journey. Retirable also offers a retirement calculator where you input your details and get a sneak peek into your retirement adventure. This tool is free and easy to use because unlocking the power of your future should be a breeze!

Strategy #4: Put Money into a High-Yield Savings Account

Want to keep some cash available for a rainy day? Don’t want to see inflation chip away at your hard-earned savings? Time to open up a high-yield savings account. With a high-yield savings account such as this one, you can set a monthly savings goal and watch your cash balance grow to new heights. It’s like earning more by doing less—because who doesn’t want financial gains on autopilot?

Strategy #5: Proactive Management of Healthcare Costs

Healthcare cost inflation is rampant, with 80% of retirees stating that “out-of-control healthcare costs” are their biggest fear.  Drug costs, a huge part of retirement healthcare for many people, can take a massive chunk out of your savings if you are not in the right Medicare plan. For example, for someone living in New York City (zip code 10009), the price difference for Jardiance (antidiabetic medication) across the most expensive and least expensive plan is $269.23 per month.

These numbers speak to why proactive management of your healthcare plan is a key ingredient for thriving in retirement. For this task, enrollment periods are your secret weapon. If you are unsure about sticking with your plan, or just want to make sure you know how to maximize your existing coverage, feel free to reach out to CoverRight for a free Medicare plan consultation with a licensed Medicare expert.

So, there you have it—a comprehensive guide to unlocking time, money, and fulfillment for a breezy, rewarding retirement. Armed with these tooltips, you can ensure that your lifelong catalog of hard work will be able to fuel a wonderful retirement for you and your loved ones.🚀💰🌴

Joseph Loren

Joseph Loren is Head of Product at CoverRight and also an expert on mental health, behavioral science and personal finance having worked at leading companies such as American Express, Cogni and Nurosene. Over 10 years experience in human-centered design and lean software development, health technology, financial services, data privacy, AI, and other industries.

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