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Retirement plans, both expected and unexpected

Kali Katerberg/Daily Mining Gazette Financial Advisor John Nelson speaks with a group of interested listeners during a presentation at the Portage Lake District Library.

HOUGHTON — For those close to retirement, or already retired, planning and preparation are key factors for a comfortable later life.

“Retirement is very different for every person,” said financial advisor John Nelson. “Some people enjoy traveling. Some people want to stick (to) home and be a full-time babysitter for the grandkids.”

Nelson is an advisor for local company Edward Jones and hosted a retirement planning presentation at the Portage Lake District Library Thursday.

Planning is the key to making money last in retirement, he explained. Key areas of focus are medical and long-term care expenses. He recommends retirement planning layout out a plan looking at expenses and life expectancy.

“We’re to the point today where if you’re looking to retire, and you’re in your mid 60’s, today you’ve got about a 50/50 chance to live to be to be 100,” Nelson said.

With that in mind, retirees need to know what they can expect their retirement savings to look like and how that measures up to the life they want to live.

A discrepancy between what is wanted and what’s available is called an income gap, Nelson explained.

“Finding out where you are today and where you want to be in retirement is critical for finding this income gap,” he said.

Coming up with a rough budget can help work out any issues in advance.

Even if there are issues, they can be worked out through methods like reduced spending, part-time work or later retirement.

Planning ahead makes these conversations possible, Nelson explained.

“Accept you’re going to go through your retirement savings,” he said.

That’s what it’s for after all but planning and preparation are the keys.

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