At Whalen Financial, we frequently work with individuals and families preparing for retirement, adjusting to life changes, or managing complex legacy goals. While each client’s situation is unique, there are several recurring questions we hear from high-net-worth individuals when it comes to building financial confidence.

Below, I’ll share insights into five key areas of financial planning—and offer a framework to help you evaluate your own financial strategy.

1. How Much Should Be in an Emergency Fund?

This is one of the most common questions I’m asked. And while the general guidance is to keep three to six months of living expenses on hand, the right number depends on your stage of life and access to other resources.

For professionals in their 40s, maintaining approximately three months of expenses in liquid savings can be a good starting point. For example, if your monthly expenses are $5,000, consider keeping about $15,000 easily accessible. This is intended to cover unexpected disruptions without tying up too much capital in non-growth accounts.

As individuals move into retirement, especially with other liquid assets available, they often feel comfortable maintaining slightly less—perhaps two months of expenses, depending on their personal risk tolerance and income sources.

Equally important: factor in near-term major expenses, such as home repairs, vehicle purchases, or health-related costs. These should be held outside of your long-term portfolio and readily accessible.

Key takeaway: Emergency funds should prioritize liquidity and safety—not growth. Use FDIC-insured savings, money market accounts, or similar low-risk vehicles.

2. Should I Keep Credit Cards in Retirement?

When discussing credit cards in retirement, my clients are often surprised by this answer: It’s not how many cards you have—it’s how you use them.

Many cards offer travel rewards, cashback, or other perks that can enhance your retirement lifestyle. But if you’re carrying high-interest debt, that benefit is quickly negated.

From a cash flow perspective, paying off high-interest credit card debt is one of the most impactful steps you can take. While it’s not technically a “return,” eliminating a 21% interest payment is effectively the same as removing a guaranteed loss.

In retirement, reducing or eliminating revolving debt gives you greater flexibility when managing investment withdrawals—especially during volatile markets.

3. How Do I Budget for Retirement Travel and Leisure?

Planning for retirement means more than just covering your essentials—it’s about supporting the lifestyle you've worked hard to enjoy.

A good place to start is by reviewing your last two years of discretionary spending, especially for travel. Then, increase that amount to reflect the likelihood that you’ll travel more during your early retirement years.

If you typically spent $6,000 annually on travel while working, it’s reasonable to budget for $10,000–$12,000 annually in early retirement. This amount can then be folded into your broader monthly retirement spending plan.

Keep in mind that retirement spending usually follows three stages:

• Go-Go Years (active, high-discretionary spending)
• Slow-Go Years (reduced travel and activity)
• No-Go Years (increased healthcare costs, lower discretionary spending)

Regular financial check-ins during these transitions can help you optimize your withdrawal strategy.

4. How Can I Protect My Children’s Inheritance?

Estate and legacy planning is evolving. More families are exploring “give while living” strategies, allowing them to see their children benefit from financial support while offering guidance along the way.

When transferring assets after death, revocable and irrevocable trusts remain powerful tools for ensuring that your wishes are carried out responsibly.

These trusts can include provisions like:

• Annual or capped distributions
• Age-based milestones
• Funds earmarked for education, health, or housing needs

For higher-net-worth families, using an institutional trustee can provide additional oversight and help mitigate emotional or biased decision-making. This impartiality is especially helpful when managing multigenerational wealth.

5. Final Thoughts on Financial Planning

While these principles can provide a helpful roadmap, your financial plan should always reflect your specific goals, risk tolerance, family dynamics, and values.

At Whalen Financial, our role is to guide you through each phase with clarity, strategy, and integrity. Whether you're preparing for retirement, managing your liquidity, or preserving your legacy, we’ll help you make decisions aligned with your long-term vision.

Let’s Build a Financial Strategy That Works for You

If you're ready to discuss how these insights apply to your financial life, we invite you to schedule a personalized consultation with our team.

• Phone: (702) 263-0800
• Email: info@whalenfinancial.com
• Website: www.whalenfinancial.com