Living with Confidence and Clarity
Financial Planning in Your 70s and Beyond
By the time you reach your 70s, your financial story already has many chapters behind it. You’ve worked hard, raised a family, and built resources to support your retirement years. Now, the focus often shifts: less about accumulation, more about preservation, distribution, and ensuring your legacy reflects your values.
This stage of life is both practical and deeply personal. Planning in your 70s isn’t only about numbers on a page. It’s about the freedom to enjoy what you’ve built while feeling secure about tomorrow. With thoughtful attention, you can make these years fulfilling and organized, giving yourself and your family clarity and peace of mind.
One of the central questions at this stage is: Will my money last? By your 70s, you’re likely drawing from Social Security, pensions, and investment accounts. At age 73 (or 75 for some, depending on your birth year), Required Minimum Distributions (RMDs) also come into play.
RMDs are mandatory withdrawals from retirement accounts such as IRAs and 401(k)s, and while they create income, they can also push you into a higher tax bracket. Careful planning helps you balance these withdrawals with other income sources, manage taxes, and ensure your money is working efficiently.
Some strategies worth considering:
The goal is to feel confident that your income can support your lifestyle, without the worry of running out.
Healthcare costs often rise in your later years, even with Medicare coverage. In addition to premiums, you may face deductibles, co-pays, prescription expenses, and services Medicare doesn’t fully cover. Planning for these costs and building them into your retirement budget can prevent unwelcome surprises.
It’s also wise to think ahead about long-term care. Whether at home or in a facility, care can be expensive and emotionally taxing for families. If you haven’t already, explore options for long-term care insurance, hybrid life and long-term care policies, or other funding strategies. Even if you decide not to purchase coverage, understanding potential costs and identifying resources to meet them can help you and your loved ones feel prepared.
Your 70s are a natural time to revisit your estate plan. This includes reviewing your will, trusts, and beneficiary designations to ensure they reflect your current wishes. Life changes (marriages, divorces, grandchildren, charitable interests) can shift priorities over time.
Important considerations include:
Legacy planning is more than legal documents; it’s about deciding how you want to be remembered, and ensuring your resources reflect what matters most to you.
Taxes don’t retire when you do. Between RMDs, investment income, and Social Security, your tax picture can become more complex in your 70s. Proactive planning helps minimize surprises.
Financial planning isn’t only about protecting against what could go wrong; it’s also about making sure your resources support what matters most to you right now.
Maybe that means traveling while you’re healthy enough to enjoy it, contributing to your grandchildren’s education, or simply having the freedom to host family gatherings without worry. For others, it may mean simplifying life: downsizing, reducing responsibilities, or putting energy into causes and hobbies that bring joy.
Your plan should align your finances with your values and goals. At this stage, clarity can provide not only financial security, but also emotional comfort.
In your 70s and beyond, the goal is confidence: knowing your finances are organized, your income is steady, and your wishes are clear. Even small adjustments, like rebalancing investments, reviewing insurance, or updating estate documents, can make a meaningful difference.
Financial planning in your 70s isn’t about starting over; it’s about making the most of everything you’ve already built. With thoughtful guidance, you can enjoy these years with clarity and confidence, leaving behind not just assets, but a legacy of love.
If you’d like to talk through your income, long-term care planning, or legacy plans, we’re here to guide you. A conversation today can help bring clarity and reassurance for the years ahead.
This stage of life is both practical and deeply personal. Planning in your 70s isn’t only about numbers on a page. It’s about the freedom to enjoy what you’ve built while feeling secure about tomorrow. With thoughtful attention, you can make these years fulfilling and organized, giving yourself and your family clarity and peace of mind.
Income That Lasts
One of the central questions at this stage is: Will my money last? By your 70s, you’re likely drawing from Social Security, pensions, and investment accounts. At age 73 (or 75 for some, depending on your birth year), Required Minimum Distributions (RMDs) also come into play.
RMDs are mandatory withdrawals from retirement accounts such as IRAs and 401(k)s, and while they create income, they can also push you into a higher tax bracket. Careful planning helps you balance these withdrawals with other income sources, manage taxes, and ensure your money is working efficiently.
Some strategies worth considering:
- Coordinating income streams: Pairing Social Security, pensions, and portfolio withdrawals to create steady income while avoiding unnecessary taxes.
- Charitable giving through Qualified Charitable Distributions (QCDs): If giving back is important to you, QCDs allow you to donate directly from your IRA to charity while reducing taxable income.
- Portfolio adjustments: Moving toward a more conservative investment approach may make sense, but maintaining some growth exposure helps protect against inflation over time.
The goal is to feel confident that your income can support your lifestyle, without the worry of running out.
Healthcare and Long-Term Care
Healthcare costs often rise in your later years, even with Medicare coverage. In addition to premiums, you may face deductibles, co-pays, prescription expenses, and services Medicare doesn’t fully cover. Planning for these costs and building them into your retirement budget can prevent unwelcome surprises.
It’s also wise to think ahead about long-term care. Whether at home or in a facility, care can be expensive and emotionally taxing for families. If you haven’t already, explore options for long-term care insurance, hybrid life and long-term care policies, or other funding strategies. Even if you decide not to purchase coverage, understanding potential costs and identifying resources to meet them can help you and your loved ones feel prepared.
Estate and Legacy Planning
Your 70s are a natural time to revisit your estate plan. This includes reviewing your will, trusts, and beneficiary designations to ensure they reflect your current wishes. Life changes (marriages, divorces, grandchildren, charitable interests) can shift priorities over time.
Important considerations include:
- Beneficiary updates: Retirement accounts and insurance policies pass directly to beneficiaries, so keeping those designations current is essential.
- Trusts and wills: Do your documents still reflect your intentions? Updating them avoids confusion and legal complications later.
- Health and financial powers of attorney: Making sure these are in place provides peace of mind that your wishes will be carried out if you’re unable to make decisions yourself.
- Charitable giving: If leaving a legacy to a favorite cause matters to you, strategies like donor-advised funds or charitable trusts can provide tax advantages while honoring your values.
Legacy planning is more than legal documents; it’s about deciding how you want to be remembered, and ensuring your resources reflect what matters most to you.
Taxes in Retirement
Taxes don’t retire when you do. Between RMDs, investment income, and Social Security, your tax picture can become more complex in your 70s. Proactive planning helps minimize surprises.
- Withdrawal strategy: Deciding which accounts to draw from first (taxable, tax-deferred, or Roth) can make a significant difference over time.
- Charitable contributions: As mentioned, QCDs are a powerful way to lower taxable income.
- Gifting to family: You may want to provide financial help to children or grandchildren. Understanding annual gifting limits and potential estate tax implications can make this both generous and efficient.
Living with Purpose
Financial planning isn’t only about protecting against what could go wrong; it’s also about making sure your resources support what matters most to you right now.
Maybe that means traveling while you’re healthy enough to enjoy it, contributing to your grandchildren’s education, or simply having the freedom to host family gatherings without worry. For others, it may mean simplifying life: downsizing, reducing responsibilities, or putting energy into causes and hobbies that bring joy.
Your plan should align your finances with your values and goals. At this stage, clarity can provide not only financial security, but also emotional comfort.
The Comfort of Clarity
In your 70s and beyond, the goal is confidence: knowing your finances are organized, your income is steady, and your wishes are clear. Even small adjustments, like rebalancing investments, reviewing insurance, or updating estate documents, can make a meaningful difference.
Financial planning in your 70s isn’t about starting over; it’s about making the most of everything you’ve already built. With thoughtful guidance, you can enjoy these years with clarity and confidence, leaving behind not just assets, but a legacy of love.
If you’d like to talk through your income, long-term care planning, or legacy plans, we’re here to guide you. A conversation today can help bring clarity and reassurance for the years ahead.