Now that you’ve reached your 60s, it’s time to reap the rewards of your effort over the last several decades. You are either at or approaching retirement, and your approach to investing will often change from what it has been during your working years.
At this stage it is tempting to want to eliminate all risk whatsoever. After all, you have saved your whole life to prepare for these years, so why risk losing it now? The problem with this mindset is that doing nothing is actually going backwards. If you don’t gain or lose anything with your investments, you are still losing out to inflation.
It is important to balance low-risk investments with a percentage of growth-based investments as well. This blended approach helps increase the odds that your purchasing power stays strong as you journey through retirement.
Another issue to address during this decade of life is how much you want to spend. In other words, what sort of lifestyle do you want to maintain? In the past, people spent less because they did less, but options for retirees have increased exponentially over the years, so there are opportunities to spend around every corner.
As some like to quip, 60 is the new 40, and in many ways this is true. As a general rule, we are living longer, we are playing longer, and as a result it is critical that our money lasts longer. In order to ensure this process is a smooth one, contact a financial professional to help you plan out your steps and create a road map for retirement success.