Retirement is a major life transition that requires careful planning and decision-making. Financial advisors play a crucial role in helping retirees navigate this new landscape and make informed choices about their finances. One key piece of advice from financial advisors is to stick to a budget.
Gene Caballero, co-founder of a financial advisory firm, stresses the importance of not only establishing a budget but also adhering to it strictly. This discipline helps ensure that retirement funds are managed efficiently and reduces financial strain when income may be less predictable. Another important tip is to have a comprehensive financial plan in place.
Michael Collins, CFA, founder and CEO of a financial planning firm, recommends creating a plan that accounts for all income sources, expenses, and future goals. This provides clarity on the retiree’s financial situation and aids in budgeting, investing, and withdrawing funds wisely.
Retirement budgeting and planning tips
Collins also advises recognizing that retirement can be a significant transition emotionally as well as financially. Adjusting spending habits, finding fulfilling activities, and maintaining a healthy work-life balance are all crucial aspects of a smooth transition. Tyler End, CFP, co-founder and CEO of another financial advisory firm, suggests creating income buckets to manage investments and income needs.
By dividing investments into different buckets and only investing in the markets with money that won’t be needed for more than five years, retirees can mitigate investment risks. End also recommends having five years of income in safe and secure assets for peace of mind. In addition to financial planning, advisors emphasize the importance of planning how to fill time in retirement.
Setting goals for hobbies, travel, or volunteer work can prevent the need to return to the workforce or unnecessary savings hoarding. By following these tips from financial advisors, retirees can navigate the transition to retirement more smoothly and enjoy a fulfilling post-work life. With careful planning and the guidance of professionals, retirees can feel confident about their financial future and make the most of their golden years.
- GoBankingRates.”4 Best Retirement Tips Retirees Receive From Financial Advisors”.
- CPBJ.”Planning is key to successful retirement”.
- LaCrosseTribune.”FINANCIAL FOCUS®: Retirees must identify and manage income sources”.