After decades of saving and planning, it may feel somewhat surreal to finally reach retirement. Once you do arrive, you will want to be careful to avoid some common financial missteps that could be detrimental in your later years. Here is a look at what you should do with your money when you are ready to retire.
Evaluate your spending
Remember that you are now living on a fixed income, which means that you should avoid spending too much too soon. Many new retirees are tempted to make large purchases early in retirement, which could leave you with little to live on as you get older. To curb spending and supplement your income, you might consider an alternative type of retirement called phased retirement, which will allow you to work part time for a few years while you adjust to your more leisurely lifestyle.
Pay attention to your portfolio
You might shift your retirement funds to more conservative investments as you get older, but this can be problematic if you do not leave some principal in longer-term growth investments. Speaking with a financial planner will help you better understand how to invest your money when you retire so that you maintain strong purchasing power as you get older.
Plan for social security
Look into your options for optimizing your Social Security payments, which can increase your total benefit. Is it best to begin taking Social Security at age 62, full retirement age of 66/67 or waiting to maximize the payment at age 70?
For help planning for your retirement, social security analysis and maintaining a strong portfolio through your golden years, contact the professional financial planners at Upstream Investment Partners. You can reach Upstream online or by calling 630-599-7115.
Upstream Investment Partners is independently owned and operated. Securities offered through Sigma Financial Corporation, Member FINRA/SIPC. Investment Advisory Services offered through Sigma Planning Corporation, a Registered Investment Advisor. Upstream Investment partners is located at 2443 Warrenville Road Suite 115, Lisle, IL 60532.