A Major Risk to Manage When Near Retirement
As you get closer to your ideal retirement date, it is understandable to become nervous about market volatility. A major crash could be devastating to your ability to retire on time.
Therefore it is so important to plan around potential market volatility in your savings and retirement planning, and stay focused on managing that potential risk as much as possible.
Here are a few tips for you to keep in mind:
- Avoid aggressive investment: As a new retiree you will still be investing, even as you start taking money out of savings. One of the most common mistakes these new retirees make is investing too aggressively early in retirement. Ideally, you have a long time ahead of you, so avoiding a potential crash because of overly aggressive investment should be a major focus.
- Check your portfolio before retiring: If your retirement date is coming up, check your portfolio to make sure it is structured in a way that avoids significant risks. Keep any money you need to meet your expenses away from stocks and potentially risky investments.
- Work with a financial expert: Your estate planning attorney can assist you with determining how your retirement accounts and benefits work into your estate plan, but you should also seek the assistance of a financial planner, retirement planner or other financial professional to get insight into the strategies you should employ to set yourself up for a stable retirement.
For more information about retirement accounts and your estate plan, contact an experienced attorney at BaumannKangas Estate Law with any questions you have.