“Over 70% of seniors say they feel their retirements are underfunded. This statistic could indicate trouble ahead for an already vulnerable population.”- Sean Sparkman
Retirement and most other senior issues have become so politicized that it’s hard to make more than just token changes to the system.
Anything meaningful that helps Americans save more for the time when they no longer work is bound to be unpopular with both the general populace and policymakers. Unfortunately, waiting for someone in Washington, DC, to “do something” may not be an ideal course of action. If you are only a few years away from full retirement age, you may want to take steps to ensure you don’t run out of money when you retire.
You can take some actionable strategies to stave off cash flow issues when you no longer get a paycheck.
Develop and implement an income plan and monitor it constantly. An astonishing number of pre-retirees have no plan to turn their savings into income, which is what you need most as a retiree. Since most financial advisors are trained to help you accumulate wealth, they often lack the product knowledge, skillsets, and tools necessary to help you correctly spend your savings and create income streams. Finding a retirement and income specialist is one way to begin the pivot from an accumulation mindset to an income mindset.
Continue to earn money. Working past age 65 delays Social Security claiming and increases your lifetime earnings, leading to higher benefits in retirement. Just because you’ve stepped away from your full-time career doesn’t mean you need to leave the working world altogether. Think about a less stressful, more enjoyable job you could do, perhaps part-time or remotely, that will allow you to earn cash while still enjoying your retirement.
Monitor your portfolio consistently. Some retirees have an “if it isn’t broken, don’t fix it,” approach to portfolio management. However, with our economy and markets in near-constant flux, you’ll need to keep a closer eye on your assets and how they fare in a volatile market. Noticing negative trends and acting quickly may help you avoid losing money during a downturn.
Keep up with home maintenance. While you are still working is the best time to tackle your home maintenance to-do list. For most people, their residence is their most significant asset. Do what’s needed to keep up its value and avoid expensive repair bills when you retire.
Discover appropriate safe money products. Depending on your risk tolerance profile, you may decide to move more of your savings into safe money choices, such as annuities, bonds, CDs, or life insurance. An annuity, for instance, can help you create predictable income that you won’t outlive. This guaranteed income stream could be an ideal supplement to your pension, Social Security, or other retirement plans and give you greater peace of mind.
Sean’s Summary: You don’t need to wait for politicians to fix our broken retirement system. A few simple choices to control your own financial destiny will ensure that you have a more prosperous, less stressful life after work. Most of all, you don’t have to go it alone. A qualified income specialist can create a plan for spending your wealth that will not only help you avoid running out of money, but also grow your savings as well. If you’d like other suggestions for designing your very best retirement, call my office to set up a consultation.