You may reminisce about the great times you had during your academic years when you think back on them. Whether it’s college, high school, or postgraduate study, schooling prepares students for their future by giving them the tools they need. When it comes to retirement planning, the same principle applies! You still have your entire future ahead of you, so make sure you’re prepared for it. Believe it or not, you’re still employed!
Get to Class on Your Risk Tolerance
Ask yourself this: Is your retirement portfolio properly balanced between low-risk and high-risk assets? Are they diversified across sectors and asset classes that are in line with your risk tolerance? It’s crucial to strike a balance between high-risk and low-risk assets across sectors and asset classes to help work towards your retirement goals.
For example, a retiree might allocate a portion of their portfolio to high-growth technology stocks while investing another portion in dividend-paying consumer staples stocks. You may also diversify across asset classes like real estate and bonds. Your risk tolerance may differ from others but making sure it is appropriate can have an effect on your retirement.
Refresh Your Income Strategy
The goal of saving throughout your working life is to enable you to have enough income in retirement. If you have reached a certain age, you must think about your money in a different way. For example, instead of wondering how much your money might grow in value, you must ask how you might maintain the value of your money and maximize the return in either dividends, interest rates, or withdrawals from retirement accounts.
There are several factors to be concerned about when deciding how to utilize Social Security payments. It’s not as easy as just taking them as soon as you retire. You should think about whether to receive Social Security payments early or if it would be better to wait and receive a larger sum. You should collaborate with your other resources to determine when to take Social Security payments to maximize your benefit.
Talk to a Financial Advisor
There are a lot of moving pieces to a retirement plan that will depend on your unique situation and goals. A financial professional will know what tools to utilize to help you work towards meeting your retirement goals. We consider your unique situation to make sure your bases are covered, and develop strategies to help you work towards your unique goals. So, talk to us today for a complimentary financial review.