Whether you’re approaching, transitioning into, or already in retirement, it’s crucial that you develop a plan to protect your hard-earned savings. Having a solid financial plan that you can rely on is critical. It can help give you the confidence to enjoy the things that are most important to you and can help ensure that your money will last a lifetime. When it comes to your retirement, nobody can read the future, but it doesn’t mean we don’t know how to plan for it. There are many resources and ways to anticipate some of your future needs. It’s important that you take ownership of your retirement, so try starting with these 3 helpful tips for preserving your wealth.
First, make sure that your long-term investing strategy is in place and up to date. Perhaps one of the biggest advantages of long-term investing is that it helps in taking emotions out of the equation. More often than not, long-term investing will subdue your emotional connections because when the market gets hot for a week or two and spikes up 10%, you will not be itching to sell. The same holds true for a week in the red, where you may be frustrated initially, but your long-term outlook will help keep your head on straight. Another advantage of long-term investing is compounding. Compounding can work to your advantage as it gives investors the ability to re-invest profits. Even at a low percent, dividends that are re-invested can help increase your overall wealth in retirement.
Second, be careful of the potential fees associated with your investments that can erode your gains. Sometimes the fees are clearly communicated to you up-front, and other times they can be tucked away and hidden within your investments. You may be paying more than you realize in 401(k) fees, for example. No matter what the market does, it’s important that you don’t throw away too much of your money on the fees attached to certain investments.
Third, try to protect yourself against market downturns by diversifying your portfolio. Ask yourself this question: How much money am I willing to lose if there’s a market downturn? It’s important that you work with your trusted financial professional to help determine your risk tolerance level and to see whether or not your current portfolio aligns with it. You may be surprised to find that some investments are either too aggressive or too conservative as it relates to your goals for retirement. As you find yourself at or near retirement, you will want to know how much retirement income you will need, and where it will come from.
So, if it’s been a little while since you last reviewed your overall retirement plan, then request your initial strategy meeting. We’ll walk you through our process, discuss your personal goals for retirement, and work with you to devise a custom plan that helps to accomplish these goals, while at the same time making sure your wealth is preserved for the long road ahead.
Securities and advisory services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/ SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA. RAA is not affiliated with Lone Beacon
Neither the named representative nor the named Broker/Dealer or Investment Advisor gives tax or legal advice.
Fixed index annuities are designed to meet long-term needs for retirement income. Early withdrawals may result in loss of principal and credited interest due to surrender charges. Distributions may be subject to ordinary income tax and, if taken prior to age 59 ½, an additional 10% federal tax. An income rider or benefit (sometimes called Guaranteed Lifetime Withdrawal Benefits, or GLWB) is an additional feature available with some annuities and generally optional and come with additional cost. Income benefits are designed to provide income options above and beyond the standard annuitization or free withdrawal features in annuities. All contract gains beyond the CAP rate are surrendered to the insurance company to pay for the expense of the product.
The views expressed are not necessarily the opinion of Royal Alliance Associates Inc, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Individual circumstances vary. Investing is subject to risks including loss of principal invested. No strategy can assure a profit against loss.