“If you want your nest egg to be robust when you're ready to retire, you have to take care of it now. That means careful investing and saving. You can't just go out there and wing it.”
Nasdaq’s recent post, “5 Considerations to Help You Retire Wealthy,” offers five things to think about as you create and manage your wealth with an eye to retirement.
- Decrease your risk. If you lose 10% of your savings when you're younger, it’s a tough bounce. But if you lose 10% of the $1 million you saved for retirement at 65, it may be devastating. It is important to know your timeline and the level of risk you can stand.
- Build a firm foundation. Be certain that your retirement's financial needs are addressed and secure them long before you retire. Create a practical budget and a plan that includes a structured way of drawing income from certain assets, implementing cash flow on others, dealing with inflation and taxes and thinking about asset protection in the event either you or your spouse require long-term care.
- Hedge your risk with diversification. There's no reason not to take some risk, but you should protect against losses so you don't lose your hat. May sure that you don't go with just one investment or asset class. It is better to maintain a diversified portfolio and to consider risk-management options.
- Be realistic. You can retire wealthy by saving your money and avoiding costly mistakes. Shift your focus slowly and strategically from accumulation to preservation, as you get nearer to retirement.
- Seek out experts. Talk with those who have experience in taxes, estate planning and financial planning. This isn’t a do-it-yourself proposition.
Conclude your working career with enough wealth to be comfortable and confident in retirement. To do so, you'll need a strategy, discipline and knowledgeable assistance.
Work with a professional who can keep you on track with your goals and help you to build your fortune, so you can enjoy it.
Reference: Nasdaq (April 21, 2017) “5 Considerations to Help You Retire Wealthy”