There’s wisdom in the concept that money is a tool, not a goal. Yet, for those approaching retirement age or wishing to be able to consider retirement, likely there is a number that can make the dream of not working a reality. In other words, we all are looking to get our retirement savings to the point where we can maintain the same standard of living in retirement we have enjoyed while working. Hopefully, you have been realistic in making the necessary calculations, and congratulations are in order if you are well on your way to achieving your goal. Now, here are four tips to make sure you maintain that standard of living throughout your retirement.
Have a plan for your primary residence
Many consider it fundamental to a workable retirement plan to have paid off the primary residence mortgage before heading off into the sunset, but that’s not practical for everyone. However, since your mortgage is likely your largest ongoing, fixed expense, it’s worthwhile to make sure you’ve considered all the options. If you can’t pay off your mortgage, perhaps consider refinancing to a longer-term. While this may seem counter-intuitive, reducing the largest budget item may make sense for some. Also, consider moving. The size of the home may be an issue moving forward, and the desirability of the location in terms of school districts or proximity to work may not matter any longer.
Rein in risk
When you’re young and are looking ahead at many years of working, an aggressive portfolio profile may make sense. As that time horizon shrinks, it’s usually a good idea to begin reducing your risk, as well, in order to protect the wealth you’ve accumulated. That said, you should be able to find a balance that offers the opportunity for some risk to be able to allow for growth without too much exposure.
No matter how well you’ve planned for your retirement, don’t be surprised if things don’t work the way you anticipated. It’s not only issues such as unexpected health problems or external events that you have no control over that can disrupt your plans, but, also, you might want something different. Maybe you want to travel more or less or find yourself wanting more to fill your days. Retirement is more than just about money, but you need to make sure you have enough to provide options to make you happy.
Don’t go it alone
As much as you have invested in your retirement, both in terms of money and time, you probably don’t know all there is to know. Spinnaker Investment Group has the expertise and knowledge to provide a fresh set of eyes and help you determine if your investment goals are realistic and provide guidance to make sure you get where you want to go. Contact us today.