Ready to Retire
Retirement is a major life milestone that requires careful financial planning to ensure a comfortable and secure future. Before you retire, take the time to consider potential living expenses, taxes and how much money you will need to live. You want to be realistic with your estimates and include any plans that impact your finances like remodeling your home or traveling. Having an accurate estimate of your expenses and accounting for any unexpected items like medical bills will ensure that you don’t outlive your savings.
Estimated Expenses
A comprehensive financial plan begins with a clear understanding of your anticipated expenses in retirement.
Daily Living Expense
Calculate your expected costs for housing, utilities, groceries, transportation, and other essentials.
Healthcare Costs
Plan for potential medical expenses, including insurance premiums, out-of-pocket costs, and long-term care.
Lifestyle Choices
Account for any hobbies, travel, or leisure activities that may add to your regular expenses.
Home Improvements
If you plan on remodeling or upgrading your home, factor these costs into your budget.
Unexpected Emergencies
It’s important to set aside a cushion for unforeseen expenses like medical emergencie or other unexpected financial needs.
Shift Your Strategy
As you transition into retirement, the focus of your investment strategy should evolve to prioritize income generation, capital preservation, and continued growth. Working with a BankChampaign investment professional can help you navigate these changes, ensuring your retirement strategy is aligned with your goals and risk tolerance. This shift involves:
Reducing Risk
Moving away from more volatile investments to options that provide steady, reliable returns, such as bonds or dividend-paying stocks.
Income Generation
Adjusting your portfolio to include investments that generate consistent income streams, helping to cover your living expenses.
Preserving Capital
Safeguarding your principal to ensure that your savings last throughout your retirement.
Continued Growth
Maintaining some growth-oriented investments to outpace inflation and ensure your purchasing power is protected over time.
