You’re changing almost everything about your lifestyle. You’ve dedicated a large portion of your life to building a career, earning income and living for what matters most to you. Now, you’re taking an income from your savings, and you’ve got a lot of time on your hands to fill!
Planning doesn’t stop when you retire — you still need to put a strategy in place for your finances and your lifestyle that sees you to and through retirement. This guide walks you through seven steps intended to guide you through a fulfilling, financially prosperous retirement.
At least annually throughout your retirement, review your monthly income and expenses. Have a strategy for income distribution that takes tax efficiency into account.
Not everyone thinks about keeping an emergency fund around for their retirement. The truth is that you still need a cash reserve during retirement! Having at least one year of living expenses tucked away can help to keep you insulated from financial emergencies.
RMDs, or Required Minimum Distributions, are a key part of your retirement income strategy. Making sure that you satisfy the annual RMD for your Tra- ditional IRA or workplace retirement account once you turn 701⁄2, or before April 1 of the year after you turn 701⁄2, is key to avoiding potential penalties.
Reviewing your investments annually can help to make sure that you’re on track, and that your port- folio is adequately balanced as you move through retirement. Additionally, putting your portfolio through regular stress-tests can help you determine whether you’re over-concentrated in one area of your investing, and how well your portfolio can withstand market volatility.
Are you still on track to have your assets cover your needs? Is there any scenario where you could outlive your assets? Every one or two years, update your retirement road map projection to see where you stand — and if you need to adjust your spend- ing to stretch out your savings.
At this point in life, your retirement accounts are likely the majority of your estate! Review the beneficiaries of your accounts each year, update your will and set up a health directive or Power of Attorney (POA). Consider consulting with an estate planning attorney to make sure all of your bases are covered.
For some, retirement makes up 20 to 30 years of their life, and that’s a big window of time! Make sure that you’re finding fulfilling activities to fill your time in a meaningful way. This could mean working part-time doing something you love, or joining a community fitness class to stay healthy and connected to others.
We begin every client relationship with a conversation – complimentary, casual, and pressure-free. We take time upfront to get to know you, your unique goals, and outline how Cornerstone may be able to help you. Fill out this form to schedule yours today.