Is it Time to Rebuild Your Financial House?
If we think back to 2008, many people lost as much as half of their retirement accounts and savings. This is something none of us should have to experience again, especially if you are retired, or looking to retire in the next 5-10 years. Hopefully, you are in a better situation now that the markets are at all-time highs. I believe the key to successful retirement comes from a successful transition and protecting your assets to create security in your financial house.
How do you ensure security in your financial house? I want to share with you a tip from my best-selling book: As you move closer to retirement, or as you plan to retire within 5-10 years, it is wise to re-evaluate your risk exposure to ensure you are taking less risk with your money. Your focus should shift from getting the biggest gains with higher risk exposure to preserving your assets with lower risk exposure. This is something we call shifting from the Accumulation Phase to the Distribution Phase. The Accumulation Phase is where you consistently add to your savings and retirement accounts and take on as much risk as you are comfortable with. Once you reach retirement, and enter into the Distribution Phase, your priorities should probably shift to protect your nest egg (all the money you have saved during the Accumulation Phase) so the income you have generated will provide for your lifestyle.
One of the biggest problems I see that people make when they move towards retirement is they try to use the same strategies or investments as they did when they had 15 or 20 years to go until retirement. So, as you move closer to and into retirement, and you haven’t shifted your strategy into more of a Distribution Phase or mindset, that is a big mistake a lot of retirees will make.
Are you well prepared for retirement or is it time for you to sit down with an advisor and review your financial retirement plan? Remember, you can always find the help you may need at Cornerstone Retirement Group by calling our office at (775) 853-9033.