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Top 3 Secrets For A Healthy And Wealthy Retirement

As retirement approaches, you may be on the lookout for financial professionals and life coaches for retirement guidance around wealth and health. Even if you feel you don’t need their services just yet, it is never too early to think about the changes retirement will bring. In this article, we dive into our top three secrets for a healthy and wealthy retirement. Read about what some successful retirees do, and what you can do to follow in their footsteps and enjoy your retirement years.

Secrets For A Healthy Retirement

Secret #1 – They Eat Well, Develop A Routine And Exercise

Pre-retirement, you had a routine based around your work commitments—in your retirement years, you may wish to establish a similar routine. A regular routine can help you gain better sleep and health. A routine that involves getting up, eating and going to bed around the same time every day does not need to be boring. In fact, you could be excited about your routine by scheduling regular activities such as personal hobbies, volunteer works to give back to the community, group exercises and socializing with the people most important to you.

Secret #2 – They Exercise Their Mind

There are two uncontrollable risk factors when it comes to your brain health—genetics and aging. This means you should take advantage of opportunities to improve your long-term brain function, which impacts the quality of your retired life. The secret lies in continuing to challenge yourself not only physically, but also mentally and socially. New or challenging experiences help to keep your mind active and strong.

Secret #3 – They Get Their Finances In Order

Stress can have a big impact on your health, manifesting in such issues as headaches, high blood pressure, heart problems, asthma, arthritis, depression and anxiety, and the number 1 cause of stress is… money. Organize your finances so you know what you have available, what you may need to live on (taking potential health issues into account), and what you wish your heirs to do with the rest of your money upon your passing. Then relax—and enjoy your peace of mind.

Secrets For A Wealthy Retirement

Secret #1 – They Continue To Create Cash Flow In Their Retirement Years

Most people assume “income” in retirement refers to pension distributions, withdrawals from registered savings plans or money from another job. However, you may be able to take advantage of other ways to create cash flow in retirement.

4 of these ways include:

  • Creating cash flow through purchasing an immediate annuity: fixed for the term, variable or index inflation annuities all provide a steady stream of income payments.
  • Creating cash flow through building a bond ladder: since interest rates are locked at the time of purchase, buying several bonds with staggered maturities provide predictable income.
  • Creating cash flow through investing in dividend paying stocks: these stocks have the potential to act as protection against inflation as the companies’ earnings may rise with inflation, resulting in increased dividend payments.
  • Creating cash flow through investing in real estate for rental income: can be less predictable, but with the right tenant can be a good source of cash flow.

For a detailed breakdown on how to capitalize on each of these, make sure to read our article “4 Ways To Create Stable Cash Flow” in retirement.

Secret #2 – They Understand Their Spending Needs In Retirement

Having a realistic expectation of your post-retirement spending habits will help you define the required size of your retirement portfolio. Make sure to take into account your bucket-list or traveling goals, unexpected medical expenses, and the increasing cost of living—especially healthcare expenses—and invest accordingly.

Most importantly, don’t forget to calculate the required after-tax real rate of return to assess the feasibility of your portfolio.

Secret #3 – They Take Charge Of Their  Income Through Personalized Portfolios

If you are a fortunate retiree who has excess cash flow over what you may need in your retirement years, you may wish to consider an investment portfolio designed to grow and preserve capital for the next generation and potentially multiple generations to come, which at the same time generates sufficient income for your retirement needs.

Through a total return approach to investing—one that generates capital gains and dividend income—you can withdraw the income generated from dividends to provide for your needs in your retirement years, leaving the invested capital to grow. The right portfolio yield for you is not necessarily the highest, but one that fits your personal financial needs, objectives, and legacy goals, as well as your tolerance for risk.

Establishing a personalized total return portfolio through a private investment manager will take away the stress of managing, maintaining and growing your wealth, considering where next month’s cash flow is coming from, and worrying about other unexpected money mismanagement expenses.

Ultimately you will give yourself the gifts of time and peace of mind, empowering you to have more quality time with family, friends or even passion projects, and to enjoy life for what matters most.

This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.

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