Iowa Fiduciary

5 Great Practices for Generating Wealth in Retirement

Are you an Iowan who is retired or planning to retire soon? Do you have a wealth plan in place to create the retirement you want? When you create wealth, you set your money to work for you, rather than the other way around. Let’s take a deeper look… 

Planning for retirement comes in many different shapes and sizes. Perhaps you started early and maxed out your 401(k) plan, or you avoided cashing out your retirement plan. Those are both great steps to help plan a financially secure retirement. The only problem you may run into however, is making sure you don’t outlive your money.

With rising health care costs and an increase in taxes, it makes it difficult for people to save and make their money last them through their golden years. At Johnson Wealth and Income Management, we give you the tools and insight for best practices in retirement planning and investing strategies.

Here’s a look at 5 great practices to help wealth during retirement.

Manage Your Spending

This is by far the most important rule to follow in order to help avoid running out of money during retirement. When you enter retirement, your spending money will come from other sources instead of a paycheck. It’s best to determine a monthly spending goal and budget based on your liquid assets and your life expectancy. That way you can start each month with an amount of money that meets those needs. 

Funding your checking account with no more than your maximum spending amount will help make following your budget easier. You can also add some wiggle room by modifying your budget month to month. The main point of budgeting is knowing exactly where your money is going so you can help control your spending.

Prioritize Your Healthcare

Proper healthcare coverage is essential to a happy and more financially secure retirement. It’s important to understand all the available options in your locality and choose the one that best suits your needs. 

One of the best ways to take advantage of savings within your healthcare budget is by having an HSA. A health savings account allows you to put pretax money away for medical expenses. You can invest the funds, and both the principal and earnings are tax-free if you use them for eligible medical costs, today or in the future. 

Cover all of your bases and make sure you and your spouse are covered during retirement so a medical bill doesn’t throw a wrench in your budget or long-term goals. This could mean buying a traditional long-term care insurance policy. Or you might consider a hybrid insurance product that combines permanent life insurance with a long-term care rider. 

Automate Your Finances

Automating your finances can be an uncomfortable transition if you’ve always managed things manually. However, as you get older you’ll help make your life a lot easier by doing so. Start by having your passwords and logins in a secure and memorable location. Inform your partner of where the information resides and document how you’ve automated your finances.

Automation ensures you won’t miss a bill and stabilizes your cash flow. Plus, it gives you the flexibility to live more and worry less about money.

Manage Your Pension

The decisions you make about how you take your pension payout could have a significant impact on the amount of income you receive. One of the first decisions you’ll probably have to make is whether to take your pension as a lump sum or as a lifetime payout. 

A lump sum could make sense if you have other assets, such as life insurance or a sizable investment portfolio. You can also choose to hire a financial advisor who can manage this for you as well as make suggestions that would grow your income during retirement. You’ll also have more flexibility to take withdrawals, and your investments could grow faster than the rate of inflation. 


Housing costs are perhaps the largest portion of monthly expenses for many Americans. Entering retirement in a paid-off home or affordable rental that suits your needs is ideal. Having a large mortgage payment can jeopardize your retirement stability. Retirees should aim to keep housing costs as low as possible to help free up money for other living expenses.

Downsizing to a smaller space, especially after your kids have moved out and have started a life of their own, is a common way to lower housing costs and stay close to family. If you live in a highly appreciated home, selling can free up large sums that can be used to wipe out debt, add to a nest egg or pay future long-term-care costs. 

Bottom Line

If you’re looking for peaceful living in your golden years, make sure to practice these 5 suggestions to help generate wealth during your retirement. In today’s economic climate, financial advisors are the go-to source for financial and retirement planning advice. But finding an Iowa-based financial advisor isn’t always easy. 

It’s important to choose someone you can trust, who makes you feel comfortable and whose skills are a good match for your individual needs. 

If you are looking for an Iowa-based, full-service financial firm you can count on, contact the Fiduciaries at Johnson Wealth and Income Management here today

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