Invest too cautiously . . . or don’t invest at all. Take too much risk with your money and you could end up without much. Whatever you do, you want enough money saved to last through your retirement years . . . and adequate cash to enjoy them
Maybe, it’s Time to Talk to a Financial Planner
The way you divide your retirement nest egg, among many possible choices, gives you a certain amount of control over how much money you’ll have in the end. “There’s no best asset allocation for retirees,” according to Kimberly A. Stockton, investment analyst for Vanguard Investment Strategy Group.
“Common rules may frame a starting point, but where you invest your money really depends on what makes you most comfortable,” she says. It’s critical to plan carefully and invest wisely. Don’t go into retirement blindly. Understand your future finances. Analyze all sources of retirement income, project future expenses and know the lifestyle you want. You’ll be in position to enjoy worry-free golden years.
Questions to Ask Yourself about Your Retirement
- What are your goals? Think about your lifestyle in retirement. What do you want to do with your time? Travel? Eat out a lot? Play golf at a country club? Visit the kids and grandkids out of state? Move to a condo or relocate to a warmer climate? Buy books and read every day? Join a gym?
- After you’ve paid all your bills and enjoyed life a little, what else would you like to do with any money you have left? Provide an inheritance for your family? Pay in advance for your funeral?
- How much risk can you tolerate with your savings? Sometimes setbacks like unexpected expenses or market downturns make it hard to have extra money. Will you have enough for health care costs and emergencies? When investments aren’t paying well, or inflation raises prices?
- Have you figured out how you’ll get by if the going gets tough? Did you talk to an investment advisor about positioning your assets so you can weather a financial setback or survive a market downturn? Have you thought about working part-time in retirement to build up an Individual Retirement Plan (IRA) while you’re healthy and able to handle a job? Do you have a Plan B?
- Do you have the self-discipline to go easy on your retirement money, especially at first? Can you keep yourself on a social security budget, limiting discretionary spending in the early years? If you don’t need to withdraw from your savings for a while, you can let your nest egg grow. Limit expenses and watch for good deals now; so, you don’t have to dig yourself out of deficit later.
- Do you have a plan for altering your lifestyle if necessary? Can you downsize your living space to lower your costs? Could you find roommates? What pleasures can you give up if you must?
For more advice on planning a comfortable retirement, contact Ron VanSurksum at AAM, (616) 531 5220.
Manage Your Money . . . financial tips from:
AAM Fee-Only Financial Planning & Investment Advisory LLC
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Ronald Van Surksum, CFP
4555 Wilson Ave SW – Suite 2 Grandville, MI 49418
Phone: (616) 531-5220 Cell: (616) 450-8439
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