Retirees are savvy individuals who have already put in the time and effort to develop their nest-eggs. Most retirees maintain some type of investment strategy, even after they have amassed what they think will be enough to last them the rest of their lives. That’s the idea, right? We want to retire, and we never want to work another day, and we want for our retirement fund to have plenty in it to last us as long as we live.
Now, of course, if we die earlier than we anticipate (happens all the time), then we would have reserves leftover in the retirement fund that could be handed down to loved ones, donated to a favorite charity, or whatever we have dictated.
Will my retirement fund run dry before I pass on?
Well let’s surely hope not. But is hope enough? Hope? Nope. It takes more. Like all other investors, retirees need to diligently maintain and develop their financial portfolios. If you want to know whether your well is going to run dry, then you need to take control of the entire area that the well sits in. You didn’t make it to retirement by a lack of thought, dedication or discipline. And it’s not time to stop yet. You can find out more about planning your retirement on the Suncorp website at www.suncorp.com.au/super.
Developing a retirement blueprint for long-term sustainability:
So ask yourself, what are the 2 main goals you have for your retirement assets? If you’re like almost all other retirees, then you would desire that:
- You have enough to last the rest of your life;
- You have enough to make you comfortable; not just enough to barely squeak by in life;
Well, here’s the deal about those 2 goals: they are sort of pitted against each other. You want the fund to have longevity so it follows to live on as little each year as you can. However, your more selfish side may be saying something like, “Hey – I want to enjoy my days. I don’t want to just sit watching television and feeling my last days pass by without enjoyment!”
And that is definitely fair. Nobody wants to work their lives away, diligently saving for retirement, only to find when they get there, that they aren’t financially able to enjoy any of what makes life sweet.
If you are already at retirement age, or close to it, then it is what it is, so to speak. The amount of assets you are working with is finite and determined. But there are still a few things you need to be doing to make the most out of what already is. Here they are:
- Approach withdrawing money or assets from your retirement fund realistically.
- Diversify your stocks, bonds and cash assets appropriately to maximize safe, long-term gains.
- Periodically rebalance your asset portfolio to reflect the sustainable strategy you have decided on.
Obviously, the more you start with, the more likely you’ll be to have some left over at the end. So that means that it’s important to maximize your returns and manage your assets meticulously. Just remember to enjoy your days along the way. Retirement’s beauty is depleted completely if you are always stuck in your thoughts of finance.