3 Potential Risks To Avoid As Your Retirement Date Approaches

 In Financial Planning, Ozarks Live, Retirement, Tips

3 Potential Risks To Avoid As Your Retirement Date Approaches

When it comes to retirement planning, the bottom line is we’re trying to reach some financial goals with the least amount of risk as possible between now and the time we need that money. Something we often forget to address are the hurdles and road blocks that pop-up on the road to retirement.

Life HAPPENS!  Your Life can change in an instant. Sometimes outside factors can cause a disturbance in your plan, hopefully not but it’s always better to be safe than sorry when it comes to your retirement.

Watch Out For These Potential Risks and Roadblocks:

  • Recession or downturn in the market
  • Job loss
  • Unexpected emergencies 

If you have stock market investments, anxiety hits as you watch the volatility of the market years, weeks or even days before your retirement.  Lessen the anxiety by adjusting your allocation mix.  How you allocate you’re money when your younger will most likely not be the same as how you want to allocate it when you are nearing retirement. It’s wise to look into diversifying your risk by spreading your investments out in an attempt to mitigate the amount of exposure. For example, if the market is booming and things are going well, you might want to take a more aggressive approach- taking advantage of that growth.

If you are nearing retirement age, we don’t necessarily expect to change jobs too often, but sometimes plans change. Changing jobs or losing a job can definitely effect retirement plans. In this case having an emergency reserve account can really come in handy. If you have done proper planning and saved accordingly, including putting money in an emergency reserve account, a job change may not hurt as bad.  Some near retirement who lose their job elect to retire rather than find a new job.  In this situation it is important to evaluate your savings or income source, find out the best time to start Social Security and include the cost of health care before you are medicare eligible.

Unexpected emergencies could occur at any time. If your family experiences a crisis, it can be devastating especially if you are earning an hourly wage without vacation or sick paid time off. So, again, back to that emergency reserve account. One of the most important parts of planning is the “what if’s”. What if I lose my job? What if I get ill? What if this? Know what you can fall back on to recuperate. Then use it; and then get back to work, get on your feet, and  start building it up again.

As always, if you have any financial questions or would like more information on this topic, give our office a call anytime at 417-882-1800 and make sure to tune into Bruce’s show next week. 

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The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.   

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice.  Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.  Our firm is not affiliated with the U. S. government or any governmental agency.  Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM).  AEWM and The Resource Center are not affiliated companies.  AW04182738 

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