There comes a time in your retirement plan when you stop asking “How much can I grow my portfolio?” To, “How can I live the life I want with my savings?” You’ve worked hard to grow your nest egg, and now you must preserve it from market downturns, making it last for the rest of your life. We have seen a shock in the market recently and even talks of recession and the state of the market at the time of your retirement aren’t within your control. Here are three crucial questions to ask yourself when preparing for and in retirement.
Do You Know When You’ll Retire?
The decision to retire isn’t always based on money. Sometimes the desire for freedom, health management, or a spouse’s retirement can drive the decision. Retiring late or early can work out fine, granted you have a solid financial plan in place. Deciding when you’re going to retire will also bring up the question of when to claim Social Security benefits and important decisions regarding Medicare. If you’re no longer receiving a paycheck, consider how you can create income streams in retirement and how you’ll draw down your retirement accounts.
When Was the Last Time You Examined Your Risk Tolerance?
Remember that you may see periods of market volatility during your retirement, and it can help to plan ahead of time. While “timing the market” is a popular investing theory, it doesn’t account for market drops caused by unpredictable events like the pandemic. An unexpected downturn can leave you in a difficult position if you’re relying on investments for income. Not every retiree necessarily has to pull out of the market completely, but every retiree needs investment planning strategies to address market turmoil.
Know How Much Income You’ll Need
Many retirees want to upgrade their lifestyle in retirement or maintain their current lifestyle. A 2021 study shows that about one in three retirees spent more than they expected they would when they first retired, and one in 10 spent much more than they anticipated.[1] To help avoid this outcome, think about how much you will spend during the first few years of retirement. This budget should include “fun money” as well as basic expenses.
Have a Financial Professional by Your Side
If you or your spouse have had a long career, you know the value of expertise. There’s a reason why we see doctors instead of just Googling symptoms, ask for legal advice from a lawyer instead of a website, and hire electricians, plumbers, and carpenters instead of DIYing every home project. These professionals have years of training and experience, and so do we. We want to be in your corner throughout retirement, and this means offering professional advice and helping you create a comprehensive retirement plan. Take the first step by signing up for a complimentary financial review with us today.
[1] https://finance.yahoo.com/news/nearly-40-retirees-spending-expected-report-202123085.html
Disclosure:
Because investor situations and objectives vary this information is not intended to indicate suitability for any individual investor.
This is for informational purposes only, does not represent legal or tax advice does not indicate suitability for any particular investor, and does not constitute an offer to purchase or sell investments.
Statements concerning financial market trends are based on current market conditions, which will fluctuate. Past performance is not indicative of future results.
Content regarding social security is not associated with or endorsed by the Social Security Administration or any other government agency. Maximizing your Social Security Benefits assumes foreknowledge of your date of death. If as an example you wait to claim a higher monthly benefit amount but predecease your average life expectancy, it would have been better to claim your benefits at an earlier age with reduced benefits.
Advisory Services are offered through Asset Strategy Advisors, LLC (ASA), a SEC Registered Investment Advisor. Securities offered through registered representatives of Concorde Investment Services, LLC. (CIS) or RCX Capital Group, LLC (RCX), both members of FINRA/SIPC. Insurance Services offered through Asset Strategy Financial Group, Inc. (ASFG). ASA, CIS, RCX and ASFG are independent of each other. All research reports from third parties are for informational purposes only.
