Creating a financial plan will lay the foundation for your financial wellness throughout your retirement and help you realize the important goals and benchmarks you can work towards as you get closer to retirement.
Verizon offers a variety of retirement benefits to its employees, including a pension, 401(k) plan, and retiree health care insurance. It is best to meet with a financial advisor who has experience working with Verizon pre-retirees and understands the many nuances of Verizon retiree benefits.
Certainly, retirement planning with Verizon is a multifaceted process that involves several key elements to ensure a financially secure and comfortable retirement. Here's a more detailed breakdown of these aspects:
- Set Clear Goals: Start by defining your retirement goals. Consider factors such as the age you want to retire, your desired lifestyle, and any specific financial milestones you'd like to achieve, such as traveling or buying a retirement home.
- Calculate Your Retirement Needs: Determine how much money you'll need to fund your retirement. This involves estimating your future expenses, factoring in inflation, healthcare costs, and any debts you'd like to pay off before retiring.
- Create a Retirement Budget: Develop a detailed budget that outlines your expected income sources (e.g., Social Security, pension, savings) and your anticipated expenses. This will help you understand if your retirement plan is on track.
- Understand Your Pension Plan Benefits: Depending on your employment history with Verizon, you may be eligible for a pension. Understand the terms and benefits of your pension plan, as this can be a valuable source of income in retirement.
- Regularly Review and Adjust Your Portfolio: As you age and approach retirement, you may want to consider shifting your investment strategy to a more conservative one to preserve your assets. Regularly review your investments and make necessary adjustments.
- Maximize Tax-Efficient Savings: Take advantage of tax-advantaged accounts, like IRAs, to reduce your tax liability. Roth IRAs, for example, allow tax-free withdrawals in retirement. Consider taking advantage of the “catch-up” provision allowing you to maximize your contributions to the Verizon 401(k) Savings Plan.
- Social Security Strategy: Understand when to start claiming Social Security benefits. Delaying can result in larger monthly payments, but it's essential to consider your individual circumstances.
- Healthcare and Long-Term Care Planning: Investigate healthcare options in retirement, including Medicare, Medigap, and long-term care insurance. Health expenses can be a significant part of your retirement budget. Verizon offers retiree health insurance to eligible retirees who can choose from a variety of health insurance plans.
- Debt Management: Work on paying off high-interest debt before retirement, as it can erode your savings. Being debt-free in retirement can ease financial stress.
- Emergency Fund: Maintain an emergency fund to cover unexpected expenses in retirement, ensuring you don't need to dip into your retirement savings prematurely.
- Estate Planning: Create a will, designate beneficiaries for your retirement accounts, and potentially establish a trust to ensure your assets are distributed according to your wishes.
- Engage Professional Help: Verizon employees should consider seeking advice from financial professionals to ensure you are on track to meet your retirement goals. Remember that early planning and consistent saving can go a long way to securing a comfortable retirement.
- Continuously Monitor Progress: Regularly review and adjust your retirement plan. Life circumstances change, as do financial markets, and your plan should evolve accordingly.
Effective retirement planning is a lifelong process that requires commitment, discipline, and a clear vision of your retirement goals. Regularly monitoring your progress and adjusting your plan as needed can help you stay on track and enjoy a financially secure retirement.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. Investing involves risk including loss of principal. No strategy assures success or protects against loss.
Neither Hapanowicz & Associates, Hapanowicz & Associates Wealth Management nor LPL Financial are affiliated nor endorsed by Verizon Communications Inc., Verizon Wireless, or any other subsidiary of Verizon. Neither Hapanowicz & Associates, Hapanowicz & Associates Wealth Management nor LPL Financial are affiliated with any of the other entities referenced on this website. This should not be construed as an endorsement of a particular firm by any CWA-Local including 13000/13500 as well as any IBEW-Local.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.