financial planning

Whether you’re approaching, transitioning into, or already in retirement, it’s crucial that you develop a plan to protect your hard-earned savings. According to a recent retirement survey by the Insured Retirement Institute, 41% of Baby Boomer participants stated “monthly guaranteed income” as the #1 or #2 most important trait for their retirement investments. Having a solid financial plan you can rely on is critical. It can help give you the confidence to enjoy the things that are most important to you, and help ensure that your money will last a lifetime. When it comes to your retirement, nobody can read the future, but it doesn’t mean we don’t know how to plan for it. There are many resources and ways to anticipate some of your future needs. But, it’s important that you take ownership of your retirement, so try starting with these 3 helpful tips for preserving your wealth.

First, make sure that your long-term investing strategy is in place and up to date. Even in the midst of the 2008 financial crisis, Warren Buffet said “over the long term, the stock market news will be good” in a New York Times article. Perhaps one of the biggest advantages of long-term investing is that it helps in taking emotions out of the equation.  More often than not, long-term investing will subdue your emotional connections because when the market gets hot for a week or two and spikes up 10%, you will not be itching to sell. The same holds true for a week in the red, where you may be frustrated initially, but your long-term outlook will help keep your head on straight. Another advantage of long-term investing lies within the power of compounding. Compounding can work to your advantage as it gives investors the ability to re-invest profits. Even at a low percent, dividends that are re-invested can help increase your overall wealth in retirement.

Second, be careful of the potential fees associated with your investments that can erode your gains. Sometimes the fees are clearly communicated to you up-front, and other times they can be tucked away and hidden within your investments. No matter what the market does, it’s important that you don’t throw away too much of your money on the fees attached to certain investments. Think about it, if you reduce the amount you spend on fees by just half a percentage point, it can not only preserve your wealth, but potentially boost the overall size of your nest egg.

Third, try to protect yourself against market downturns by diversifying your portfolio. Ask yourself this question: How much money am I willing to lose if there’s a market downturn? It’s important that you work with your trusted financial professional to help determine your risk tolerance level, and to see whether or not your current portfolio aligns with it. You may be surprised to find that some investments are either too aggressive or too conservative as it relates to your goals for retirement. As you find yourself at or near retirement, you will want to know how much retirement income you will need, and where it will come from. Additionally, you will want to have a diversified investment strategy to maintain adequate cash reserves.

So, if it’s been a little while since you last reviewed your overall retirement plan, then request your complimentary, no obligation financial review! We’ll walk you through our process, discuss your personal goals for retirement, and work with you to devise a custom plan that helps to accomplish these goals, while at the same time making sure your wealth is preserved for the long road ahead.