Staying Afloat During the Golden Years

Many people spend their entire working career talking about that wonderful day when they can lay up the tools of their trade, drop a big crayon on their boss’s desk, telling them to “color me gone,” and then ride off into the retirement sunset! If that sounds like you, let me encourage you to begin the process of preparation for that great and wonderful day.

It’s time to take stock of your past and present retirement planning. Getting there is only part of the event. Staying afloat is going to be the greatest of all the challenges. You must have a well-balanced plan to keep you in retirement once you arrive.

After having spent an entire career saving and planning, it is of utmost importance that you know how to maintain balance. For example, it may be time for you to tame down some of your aggressiveness in investments. Now, I’m not inferring that you go and buy CDs. However, if you have taken a stance of growth first and capital preservation second, it may be a good idea to reverse the stance, going first with capital preservation and with growth second. While growth is important in staying ahead of the inflation curve, the principal not diminishing is far more important to provide income. This can be achieved by establishing the portion of the principal required to provide the desired income stream and adding 10 to 15% to that amount and then primarily investing it in income-producing assets. With the balance, focus on growth without making any income requirements of these investments.

It is of utmost importance that you remember that there is no one-size-fits-all plan. Your Financial Solutions Group registered financial professional can help you determine which approach will work best for you and your retirement goals. Stay informed, stay involved and keep learning!.

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