Financial consultant with
Thrivent Financial Andy Hughes speaks with one of his
clients, Scott Lopas of Hartford, on Thursday afternoon
at the Thrivent offices in West Bend.
John Ehlke/Daily News
Like most Americans, 31-year-old financial consultant
Andy Hughes is looking forward to his retirement. But
unlike many, he knows financial planning doesn’t stop
once your working days are over.
“During the accumulation phase of retirement planning —
when you are saving for your retirement — I suggest
saving now and spending later,” he said.
Whether you are developing your own financial strategy,
taking advice from family members, friends or national
figureheads or working with a professional financial
planner, set goals and figure out what you need to do to
reach them, said Hughes, a financial consultant with
Thrivent Financial. Develop a solid investment plan that
will allow you to achieve your goals, maximize matches
from your employer and attempt to minimize your tax
layout after retirement.
can seem complicated, but there are professionals who
can help make sure you are achieving the right balance,”
There is not a cookie-cutter approach to developing a
“The slipper that fit on Cinderella’s foot didn’t fit on
her sisters’,” he said.
you decide to work with a financial planner, Hughes
offers some advice:
Find one who is transparent about fees, risks and
Share your goals and financial challenges. “It’s just
like when you go to your doctor and tell them your
medical history so they can give you the best diagnosis
and treatment,” he said.
Ask any question you have.
Make sure your plan is truly diversified. “Many people
say they don’t want to put all of their eggs in one
basket so they invest in a lot of different stocks and
funds,” Hughes said. “Yet when we look at what they
have, it’s a lot of the same kinds of investments.
Basically people have a lot of baskets with the same
eggs in them. That is not was diversification means.”
Once you do retire and enter the financial distribution
phase, remember that your financial planning is not
finished. There are generally three distinct stages of
tell people to plan for their go-go years, their slow-go
years and their no-go years,” Hughes said.
go-go years are the 10 to 15 years after retirement,
when you will likely be most healthy and active. Plan to
spend 5 to 15 percent of your savings on activities like
travel, golf and spending time with your grandchildren.
don’t expect it to be easy. Spending money accumulated
over a lifetime and watching it ebb and flow during
market undulations can be emotional.
“Don’t hit the panic button,” Hughes said. “Talk to your
advisor. We will help you ride it out so you enjoy those
go-go years as much as possible.”
ensuing slow-go years are characterized by fewer
activities combined with a desire to stay connected,
said Jack Teboda, president of Teboda and Associates, a
Florida-based financial services firm. In those years,
retirees may move closer to their children or into a
retirement community to feel more socially connected.
“Sometimes at this point, especially if they haven’t
planned well, people may start to have even more worries
that they will outlive their money,” Teboda said. “One
way they address that is to cut back on expenses. Some
people even decide to get a part-time job to bring in
extra money, and working becomes another way to stay
third stage of retirement — the no-go years — are spent
in long-term care facilities for up to 70 percent of
“When people map out their retirement,” Teboda said,
“they need to plan for that possibility because the cost
of long-term care can be devastating to your finances.”
Hughes suggests investing in long-term care insurance as
early as possible to lock in affordable premiums and
ensure coverage. Hughes and his wife, for example,
already have policies in place.
“Many people plan to have something to pass on,” he
said. “A solid financial plan can help make that a
Adjusting to the three stages
Adjusting to new lifestyle. It’s not easy to flip the
switch overnight after you’ve spent several decades
reporting to work every day. Also, if your retirement
income is largely dependent on your savings you’ll want
to be careful that you don’t spend too much in those
Staying socially connected. As the years pass, many
retirees move closer to their children or move into a
retirement community because it makes them feel more
Realizing you may need assistance. More than 70 percent
of Americans older than 65 will need some form of
long-term care at some point in their lives, according
to the U.S. Department of Health and Human Services.
Jack Teboda, president of Teboda & Associates, a
financial services firm