Investors entering the retirement phase of one’s life cycle may be distressed by what might be perceived as a relatively small portfolio, and considerations with respect to how one expects to make ends meet in retirement are certainly something to be wary of.
Conditions vary for everyone entering retirement, and some of the best advice I have received echo a similar tone:
Focus on Expenses
The amount one will need in retirement is directly linked to the amount of money one expects to lay out via every day expenses and discretionary spending. For those who love to travel, setting aside a larger amount of money every year heading into retirement is an excellent idea.
Following a “scrimp and save” mentality in one’s latter working years can provide amazing benefits for those looking to live life to its fullest in one’s golden years.
Of course, the earlier one starts, the better off one is likely to be when nearing retirement – that being said, a better-late-than-never approach is certainly warranted for those sitting on the fence and looking to accumulate assets which will support a given lifestyle in retirement.
Don’t Forget the Value of “Other Assets”
As with any company, cash and cash equivalents only go so far – having assets one can bank on for cash flow in retirement are key.
Whether it is a golden-plated pension one expects to rely on, an investment property, or a stock portfolio, ensuring the revenue side of the equation is fully hashed out is critical to investors thinking long-term about money management.
Invest wisely, my friends.
