So you just finished writing your “gold watch” ceremonial acceptance speech, what should come next in this new and rewarding chapter of life better known as “retirement?” For starters, it is the perfect time to conduct a comprehensive review of your investment holdings. Knowing that you will have enough financial means to carry you through without worry doesn’t happen by leaving things on auto-drive. Knowing if you will have enough applies even more so after you retire.
Asses your investment account risk tolerances.
For many retirees, a fair portion of their investment portfolio may include stock holdings. Stocks that have likely performed well over the years. However, depending on market conditions and timing of your retirement, it may be time to move some of these investments into lesser risk tolerance offerings.
By spreading your higher-risk stock investments across multiple platforms, you lessen the risk of losing the net worth needed to sustain your desired lifestyle. Doing this can also help you meet any of your post-retirement financial goals – should the stock market take a dramatic turn like it did in 2007. With that, annuities and bond funds are a great option to explore with your financial advisor.
Is your estate plan solid enough to ensure your loved ones are protected?
Retirement also marks the beginning of the “transfer phase” of life for many. This is especially true for those who wish to transfer assets to their heirs. Without a solid estate plan in place, financial inheritances can frequently bear financial burdens to the ones you are trying to help.
Estate planning and financial planning go hand in hand with each other. Because of this, your financial advisor needs to work in tandem with your Estate Planning Attorney. Together they can help you review and update items such as wills, trusts, insurance policies, and more. With a proper estate plan in place, you can control how and when your assets get distributed, and you can minimize estate and gift taxes.
Regular financial plans reviews with your advisor have never been more important!
No matter what, you need to conduct regular financial plan checkups with your advisor to ensure you are on course as needed. Because once you hit retirement, the time you have left to correct financial losses is considerably less. And for those who no longer receive a regular paycheck, the idea of contributing to retirement accounts (to offset any downturns) is also gone. Correcting financial missteps is way too challenging in a post-retirement phase of life. By consulting with your advisor regularly, you can make adjustments to your investments throughout the year. To live your ONE BEST LIFE during and well into your golden years without worry.