Retirement Planning for Charleston’s Coastal Lifestyle: Financial Strategies for Lowcountry Seniors

A question we get asked often is what, exactly, goes into getting the most out of retirement along Charleston’s coastline. In our (perhaps a bit biased) opinion, a Charleston retirement is one of the most rewarding experiences, and we enjoy helping those nearing this next phase in life prepare for what’s possible in the Lowcountry.

That being said, there are a few common strategies we use to help our clients align their financial resources with their desires for a relaxing (or perhaps adventurous!) retirement. These include:

#1: Consider Future Expenses (Including the Cost of Living in Charleston)

While Charleston is typically a more expensive place to live than other parts of South Carolina, its cost of living is pretty on par with the national average. One thing to keep in mind? If you’re living in the Lowcountry, you’ll need to take into account flood insurance and the likelihood of experiencing damaging natural disasters (which may or may not be fully covered by insurance). 

We help our clients understand what their retirement expenses may look like, which can be especially helpful for those who may be moving here from other parts of the state or country. In doing so, we can better determine how much is needed to retire comfortably while enjoying everything Charleston has to offer.

#2: Create a Retirement Income Strategy

With an understanding of your anticipated expenses in retirement, the other half of the equation must be considered as well—where your income will come from. Unlike a paycheck from a single employer, your retirement income will stem from different sources with varying tax treatment. We’ll take a look at what’s available and how it will impact both your immediate and lifelong tax liability. From there, we’ll build an income strategy to support your retirement goals and needs.

#3: Take Taxes into Account

No one wants to pay more in taxes than they have to, especially when your resources in retirement feel finite. That’s why we work with those in or near retirement to develop withdrawal strategies that balance both their potential tax liability and longevity needs. 

Some common areas of tax concern include:

• Estate planning: Those with sizable estates may need to find opportunities to reduce their estates throughout their lifetime in order to stay under the federal estate tax exemption limit. However, it’s worth noting that South Carolina does not impose a state estate or inheritance tax.
• Gifting:If you’re charitably minded, we can help you find opportunities to support your favorite philanthropic causes in a tax-minded manner. This may include establishing a donor-advised fund, bunching multiple years’ contributions together, creating a charitable trust, or pursuing another strategy that addresses your legacy goals. For individuals aged 70½ or older, a Qualified Charitable Distribution (QCD) from your IRA can be a powerful way to give while reducing your taxable income.
• Required minimum distributions: If you’ve saved up in a tax-deferred retirement plan, like a 401(k) or IRA, you may be subject to required minimum distributions. These required distributions do add to your taxable income for the year, which is why proactive planning is important. 

#4: Establish an Estate Plan

While estate planning is often associated with death, it’s important to remember that the legal safety nets you build into your estate plan can help protect you while supporting your loved ones in your most vulnerable moments. A well-established estate plan includes critical documents like power of attorney, a healthcare directive, and a living will—all of which can help ensure your wishes are carried out in the event you become incapacitated or experience cognitive decline. 

Your estate plan will also serve as a blueprint for your family and loved ones to follow after death. Keeping it up-to-date and legally sound can help your family avoid future conflict, confusion, or added stress.

Are You Daydreaming About Your Charleston Retirement? We Can Help

The road to retirement is an exciting one, but achieving your goals often requires proactive planning and the help of a steady, experienced guide. Our team at Partners in Financial Planning aligns every aspect of your financial life with your long-term goals (like achieving a laidback retirement in the Lowcountry) to help you build a retirement that’s long-lasting, fulfilling, and financially stable.

Interested in learning more about how we can help you make the most of your journey towards retirement? Get started by scheduling a free 15-minute phone call with a member of our advisory team today.