Most consumers know that planning for retirement takes a lifetime. While it’s more fun for consumers who are still working to focus on what they want to do with their new-found time, what they should be thinking about is wealth management. Read on to find five tips for how to save for a comfortable retirement.
1. Hire a Professional
Consumers don’t have to be exorbitantly rich to consider hiring wealth management professional. Just about anyone who is already on the path to saving for retirement can benefit from talking to one of the experts at Commerce Trust Company about how they can manage their investments to plan better for the future. Wealth management specialists can help their clients understand their options, making it easier for them to make good use of the money they already have in the bank.
2. Build a Diversified Portfolio
Every person’s financial situation is different, but most investors can benefit from a diversified portfolio. For those who are new to wealth management and investing, the reasoning is that the investments that generate the highest returns are more likely to be risky, and it’s not worth gambling with your future.
Instead, consumers should take some risks but should also keep plenty of their money in safer investments. That way, if something goes wrong with one of their investments, the investor still have others to fall back on.
3. Prioritize Spending
It may be tempting to spend money helping out struggling family members and friends, but as they near retirement, most consumers find that they don’t have room in their budgets for facilitating their loved ones’ repeated mistakes. That doesn’t mean investors need to harden their hearts, but it does mean that they need to consider their priorities carefully before throwing away money on investments they know won’t pan out or bailing the same grown child out of personal money problems over and over again. Learn how to let loved ones make their own mistakes and find other ways to show support.
4. Prepare for Spending Shifts
Most people go through shifts in their spending patterns as they approach and begin retirement, and it’s best to plan for them. Almost everyone spends more money than usual during the earliest phases of retirement. Some travel abroad while others become involved in new groups or hobbies and these activities take some extra cash.
Most consumers also follow the same spending patterns through the rest of their retirements. They’ll slow down on spending as they start staying closer to home, then eventually begin devoting more of their money to medical expenses as they age. Knowing what to expect makes it easier to plan.
5. Hire an Estate Planner
Some wealth management professionals will also help their clients with estate planning, which offers the perfect solution. It may feel strange to consider writing a will or establishing trust when in good health, but it’s a much better idea than waiting until an accident or illness strikes. Don’t put off this admittedly less-pleasant aspect of financial planning.
The Bottom Line
It doesn’t take a small fortune to retire in today’s society. What it does take is a solid plan and a well-diversified investment portfolio. By far the best way to ensure a comfortable retirement is to speak with a wealth manager about available investment options, appropriate wealth management strategies, and other factors that might influence how much money consumers have to spend during their golden years.