Annuities, IRAs and pension plans are just some of the income streams that can be available to you after you retire. When you get the help of a good financial planner in Frisco, TX, you’ll get all of the information you need to help construct a retirement investment portfolio that will give you peace of mind. After all, isn’t that what we all envision when we daydream about retirement – worry-free days spent relaxing at the beach or travelling around the world? Here are some steps you can take to ensure that your retirement is everything you hoped it would be:
▪ Maintain A Solid Investment Portfolio
Even if you didn’t start planning for your retirement until later in life, your investment portfolio should contain a good mix of conservative and moderate investments. Your conservative investments and income streams, like your pension plan or CDs, should be able to sustain you through several years of living expenses while your more less-conservative investments, like stocks and some types of annuities, give you a chance to grow your income quickly. You should err on the side of more conservative types of investments for each decade after you pass 60. As your financial planner in Frisco, TX will likely tell you, volatile investments are much harder to recover from after retirement.
▪ Retire Debt-Free
Make it one of your goals to be completely debt-free before you retire. High interest rates on car and home loans and on credit cards don’t seem as daunting when you’re working and able to bump up your income through promotions or changing jobs; but once you’ve retired, they can wreak havoc on your financial security. It’s also good for you mentally not to carry heavy debt into retirement.
▪ Keep A Cash Reserve
The rule-of-thumb for people still in the workforce is to keep enough cash on hand to cover 3 to 6 months-worth of living expenses in case you lose your job. The thinking behind it is that you should reasonably expect to find another job within that timeframe. For retirees, the rule is to have enough cash to cover 12 to 18 months-worth of expenses since it may take that long for your portfolio to recover from whatever problem it encountered that cost you money.
▪ Don’t Overspend
Unless you are mega-rich, retirement isn’t a time to spend money frivolously. In fact, after retirement you should be even more thoughtful and conservative with how you spend money. If you’ve invested wisely and well, you’ll have opportunities to spend money on travel or on an RV or on your grandchildren; but, in general, it’s best to be more cautious with your money after you retire.
▪ Don’t Slow Down
If your life has always been full of activity, don’t slow down during retirement just because you think that’s what you’re supposed to do. Enjoy your hobbies or find new ones. Retirement is also a great time to dabble in a dream job you’ve always wanted but knew would never pay the mortgage. Just because you’re over 65, that doesn’t mean your life shouldn’t be fulfilling and meaningful.
If you want to learn more about investing for retirement with annuities and other financial tools and you live in Frisco, TX, call me, Jason Graziani, at (972) 992-1920 to make an appointment for a consultation. You can also learn more about me by visiting me online at www.jasongraziani.com.
Annuities Frisco TX
15150 Preston Road, Suite 300
Dallas, Texas 75248
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