SACRAMENTO, CA / ACCESSWIRE / December 8, 2020 / A nurse spends their career helping others. It is more than a job; it is a true calling. They spend hard days, long hours, and the job can take an emotional toll. Still, when the time comes to retire, one cannot simply "turn off" their calling. This means a lot of questions need to be asked while several life adjustments are in order.
Retirement finances often rank high on the "to do" list before officially retiring. Financial security after retirement should be something planned in advance. While it's always better to start early, it's never too late to start planning for your retirement.
Chris Bulman and the team at Bulman Wealth, just outside of Sacramento, CA, specialize in building retirement plans for nurses and medical professionals. If you are a nurse (or medical professional), consider the five tips below from Chris and his team on how you can feel more prepared for retirement.
Who You Work With Matters
Who you work with can have a tremendous effect on the outcome. For example, if you wanted to start to eat healthier, would you consult with your local butcher or find a dietician?
When you are making big decisions, like what to do with your 401k/403b or when to file for Social Security, Bulman and his team recommend you find a financial professional who is a fiduciary. Essentially, someone who is legally bound to do what is in your best interest.
In the analogy above, a fiduciary would be like a dietician. They would take a look at the entire picture and then make recommendations on how to proceed. There are many financial professionals who focus on a product, like a butcher would focus on selling you meat. Remember, a dietician can also recommend meat, if it is in your best interest. Who do you want to work with?
Build A Retirement Plan That You Understand
Information is almost useless unless you know how to apply it. If you feel you don't have the ability to put together a comprehensive retirement plan, it's OK. Consider working with a professional who does. Whoever you work with, make sure they are able to provide you a plan that you fully and completely understand.
You don't need a financial degree to understand a retirement plan. A plan is nothing more than a structured system that is built to take you through retirement without running out of money. Life happens, adjustments will need to be made, but you still have a clear direction. That clarity and direction can make a huge difference.
When You File For Social Security, It Can Have A BIG Impact
With over 500 ways you can file for Social Security, it can feel overwhelming to determine what is right for you. In addition, when you file can make a six-figure difference in your retirement. How can you tell which option is right for you?
Assuming you have decided to work with a financial professional, make sure they discuss with you the different options. Each option has a benefit and a detriment. There is no silver bullet. For example, if you take your Social Security earlier, it can lead to more assets in your estate to be passed on to your heirs. This assumes you will not need to take as much income from your assets.
However, if you take Social Security later, it can lead to more income in retirement. Your plan should be tailored to you. Keep in mind, filing for Social Security must be based on your unique wants and needs.
Consider Rolling Over Your 401k And 403b
A 401k or a 403b are similar to IRAs, expect they have limited investment options and have additional restrictions. If you were to transfer from one hospital to another, your old 401k/403b can be transferred into an IRA without a penalty, which may give you more investment options.
Essentially, before you retire, it is encouraged that you take inventory of what you have, locate where it currently is invested, and explore all the options that are available for those funds. Assuming you are with a financial professional, you may be surprised at some of the options that are available to you right at this very moment.
Compare The Pension Options Vs The Lump Sum Option
The pension is a rare bird these days when it comes to retirement planning. With its rarity comes confusion. At first glance, a pension can feel like a very comfortable option. It is a lifetime income stream. However, what you may not know is that it could come at a cost.
If you took the pension and you and your spouse were to pass within a few years of retirement, the pension goes away. If you had taken the lump sum, there would be more to pass to your heirs.
On the other hand, having a lifetime income stream can feel very comforting. There is no right or wrong answer. The objective is to consider both options and determine what is best for you while looking at the whole picture.
Retirement may seem scary from the outside. With complete planning, while working with a fiduciary, Chris and his team at Bulman Wealth believe it can be a wonderful next step. Consider how great life could be, if you didn't have the financial stress retirement often brings.
If you are a nurse and want to get in touch with Chris and his team, you can find him at bulmanwealth.com.
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SOURCE: Bulman Wealth
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