Building an Investment Plan to Sustain Your Retirement

Retirement planning requires having every piece of the puzzle in place to ensure a successful transition to financial independence, and one of those pieces is investment planning, which takes thoughtful construction and execution.

Retirement planning requires having every piece of the puzzle in place to ensure a successful transition to financial independence, and one of those pieces is investment planning, which takes thoughtful construction and execution.

Of course you have to start with making sure income needs are met month to month in retirement, but where do you put the leftover funds? An advisor will be able to take you through a wide variety of options, but determining which path you want to take depends on what your goals are.

One of the common objectives we’ve seen lately is outpacing inflation. Even when inflation isn’t sitting over 8%, it still needs to be factored into your planning. Without an investment strategy to outpace inflation, your money will slowly be losing buying power over the life of your retirement.

Other people are looking for outstanding growth over a long timeline. With all of your needs covered, the goal might become growing the rest of your money to accommodate extra expenses or add to the legacy you want to leave behind. We also know that some folks enjoy ‘playing the market’ with money they don’t absolutely need and that can be accounted for in an investment plan as well.

No matter the goals, however, investment planning needs to include a conversation about risk. Whether you’re entering retirement or already there, you want to make sure that you’re taking on as much risk as you’re comfortable with but not more than you need. Too many people maintain high levels of risk into retirement when it’s unnecessary and that can put everything in jeopardy.

As we assess your risk tolerance and evaluate the ways to control volatility, we can determine what type of investments you’ll need. You might think that being conservative means moving to cash, but you can construct a plan that reduces risk while still working towards your goals.

A couple more things to keep in mind when you’re building an investment plan are fees and active versus passive management. Different companies and products have different approaches so you’ll want to understand what you’re getting out of your money and that’s another thing your advisor can help you with.

Investment planning will be a key piece of your overall retirement plan and one that can create a lot of unnecessary stress so don’t put your future at risk by not having a well-thought-out investing strategy.

Share This Post

More To Explore

The S&P 500 and The Mag 6?

Tune in as Phil and Marc discuss the S&P 500 and how to make informed decisions that align with your financial goals. They also talk about the importance of understanding the true makeup of your investments, the risks of chasing returns, and the necessity of a well-rounded strategy for your retirement planning.

Be Careful Who You Listen To (Getting The Right Financial Advice)

When it comes to your financial future, who you listen to can make all the difference. In this episode, Phil shares the story of a long-time client who was swayed by a pushy insurance agent into making a potentially detrimental financial decision. Despite having a well-thought-out plan and a balanced portfolio, the client was convinced to move all their assets into annuities by an agent who played on their fears about market volatility.

Retirement Planning “Aha” Moments

Have you ever experienced an “aha” moment that changed your perspective on something important? These are the moments when the light bulb goes off, and everything starts to make sense. This week on Phil’s Tax Hacks, we talk about some revelations that clients experience when working with a financial advisor.