Fiduciary Retirement Financial Advisor in Buffalo NY
As you approach retirement, your financial strategy needs to shift from accumulating wealth to managing and preserving it for the long term. While you’ve likely spent your career building your savings, now is the time to rethink how you manage your assets to ensure you maintain financial independence throughout your retirement years.
Transitioning from Accumulation to Distribution Fiduciary Retirement Financial Advisor in Buffalo NY
In retirement, you’re no longer focused on accumulating wealth—now, the goal is to generate income to support your lifestyle. This may mean shifting your investments from growth-focused assets to those designed to meet your short-term needs. However, it’s important to remember that some of your needs may still be decades away, and it’s essential to ensure your portfolio continues to meet long-term objectives as well.
Retirees often become more risk averse as they leave the workforce. Without a steady income, the idea of losing your nest egg can be unsettling. It’s common to seek very low-risk investments, but it’s important to remember that, even in retirement, you may need a balanced approach. Your retirement plan should not only account for the next few years but also for inflation, longevity, and market fluctuations over the next two decades or more.
The Impact of Health Care and Lifestyle on Your Budget
It’s not uncommon for retirees to have a more expensive lifestyle than they anticipated. Many plan to travel, pick up hobbies, or indulge in other recreational activities, which can significantly add to living expenses. Health care costs also continue to climb, and they are a major consideration in retirement planning.
Whether your goal is to maintain your current standard of living or to take on more activities, it’s essential to calculate how much you will need for the long haul. Some financial advisors recommend planning for an income that covers 100% of your pre-retirement expenses—or more—depending on your desired lifestyle.
How to Supplement Your Retirement Income
If you find that your retirement income won’t cover the lifestyle you envision, there are several strategies you can consider. Many retirees supplement their income by working part-time, consulting, or even turning a passion into a small business. The earlier you address potential shortfalls in your retirement income, the better. This gives you time to make adjustments, whether it’s working a few more years, saving more, or adjusting your budget.
Reviewing Your Investment Strategy
During retirement, it’s crucial to revisit your investment strategy to ensure your portfolio is balanced and aligned with your goals, risk tolerance, and time horizon. Many retirees make the mistake of being overly conservative, holding too much cash, and not maintaining a diversified portfolio. While it’s important to have liquid assets for emergencies, holding too much cash can be detrimental in the long run due to inflation and low interest rates.
Retirees typically face 20 or more years of retirement, so a well-diversified portfolio is essential. You don’t want to risk running out of funds prematurely, especially if your portfolio isn’t generating enough growth to outpace inflation or meet your income needs.
A professional financial advisor can help you assess your portfolio to ensure it’s properly diversified, helping you avoid common mistakes and ensuring your strategy aligns with your retirement goals. They can also help you adjust your approach if your current plan doesn’t support the lifestyle you want.
Mintco Financial: Your Fiduciary Retirement Financial Advisor in New York
At Mintco Financial, we understand the importance of making sure your retirement is secure and your wealth lasts. As a fiduciary financial advisor, our team is committed to putting your interests first and helping you navigate the complexities of retirement planning. We believe that everyone deserves access to professional financial advice that’s clear, actionable, and tailored to their needs.
