Many people spend a lifetime working toward a comfortable retirement. You might have multiple streams of income planned for retirement after working diligently to meticulously plan every financial detail. But does that mean you can rest on your laurels when you retire?
Of course not! You never know how long retirement will last. You won't know how the economy and inflation will impact your wealth, either. You've worked hard to get to retirement, but you should still have professional wealth management for retirees as you enjoy your golden years.
Managing Your Income
Having multiple retirement income streams is a great way to ensure financial stability. Once you retire, you must figure out how to withdraw your funds. Tax-advantaged funds have distinct rules surrounding early withdrawals, required withdrawals, taxes and more.
When you retire, it's a good idea to look over your sources of retirement income. They might include a 401(K), pension, Social Security, etc. Review IRS withdrawal rules and plan how and when to draw funds.
Adjusting Your Expenses
One of the biggest challenges many retirees face is managing expenses on a fixed income. Retiring doesn't mean you can throw budgeting out the window. Reviewing your expenses and looking for space to save is a good idea.
Many retirees opt to downsize. Doing so can dramatically reduce living expenses, leaving more room. Some also decide to rethink life insurance premiums if their children are grown and self-sufficient. There are many ways to save, and a big part of wealth management for retirees is creating a budget that can help maximize your retirement income and ensure your income covers your bases.
Modifying Investment Strategies
Another thing to consider is how you want to continue investing moving forward. For many people, accepting risk to maximize winnings is okay when they're young and still working. But many retirees aren't comfortable with high-risk investments.
In retirement, the goal is often to preserve one's wealth and make income from investments. That requires a more conservative approach. When you retire, you should work with an advisor to rethink your investment strategy and realign your portfolio to your goals.
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