Navigating Financial Decisions: Your Guide to a Secure Future

As you approach retirement, it's crucial to make wise financial decisions to ensure the security of your golden years. 

As retirement looms on the horizon, it's natural to feel a mixture of excitement and uncertainty. With all the planning and preparation that goes into this phase of life, you may be left wondering if you are making the right financial decisions for a comfortable and secure future. 

At NJM Wealth Preservation Strategies, we're here to help you evaluate your choices and create a roadmap to financial success as you approach retirement.

Knowledge is Power

Seniors, particularly those near retirement, need more support for financial decision making to help promote effective decision making. 

Did you know that 71% of adults in the US believe they have high financial literacy levels, but only 33.4% of Americans turn to professionals for financial guidance?

What do these conflicting numbers mean? An unfounded level of confidence.

These same US adults could only correctly answer half of the questions on the financial literacy exam. (P-Fin Index). 

Financial literacy plays a huge role in making informed decisions that will impact your financial well-being. By investing time dedicated to financial education, you’ll better your understanding of:

With the constantly changing economic landscape, it’s more important than ever to have a solid understanding of preserving and growing wealth through knowledge and education.

Determine Your Retirement Goals

Everyone's vision of retirement is unique. Some individuals may desire a quiet life, while others dream of traveling the world. 

Establishing your retirement goals will help you make sound financial decisions that align with your aspirations. Consider factors such as your desired retirement age, the lifestyle you wish to maintain, and any anticipated medical expenses.

By outlining your objectives, you can begin to think about creating a personalized financial plan. But first…

Assess Your Financial Standing

Before making any decisions, it's crucial to have a clear understanding of your current financial situation. 

Start by creating a comprehensive list of all your assets, including real estate, investments, savings accounts, and retirement accounts. Additionally, take note of your debts, such as mortgages, loans, and credit card balances. 

Armed with this information, you can better determine whether you're on track to meet your retirement goals and identify areas that may need improvement.

Diversify Your Investments

Diversification is essential in any investment portfolio, particularly as you approach retirement. 

Spreading your assets across various investment types and industries can help minimize risk and maintain steady growth. 

As you near retirement, consider reallocating some of your high-risk investments into more stable options, such as bonds and dividend-paying stocks. A well-balanced portfolio can help protect your savings and help ensure a comfortable retirement lifestyle.

Review Your Insurance Coverage

As you age, your insurance needs may change. Take the time to review your current policies, including life, health, and long-term care insurance. 

As mentioned above, ensure that you have adequate coverage for any potential medical expenses, as well as provisions for your spouse or dependents. You may also want to consider purchasing additional policies or adjusting your existing coverage to better suit your needs in retirement.

Other insurance policies you should consider factoring into your financial plan include:

  • Homeowners or Renters Insurance
  • Travel Insurance
  • Car Insurance
  • Umbrella Insurance
  • Annuities

Consult with a Financial Advisor

Navigating the complexities of retirement planning can be daunting. Enlisting the help of a trusted Fiduciary advisor can provide you with invaluable guidance and support. 

The right advisor can help you evaluate your current financial situation, develop a personalized retirement plan, and make informed decisions to secure your financial future:

  • Developing a budget that reflects your lifestyle.
  • Factor in expenses related to healthcare and long-term care.
  • Help design an investment strategy that aligns with your financial objectives, risk tolerance, and time horizon. 

By having a plan in place, tailored to meet your specific needs and goals, you can help ensure you're making sound decisions to protect and grow your wealth in retirement.

Final Thoughts

Most of us dream about achieving financial freedom by the time we reach our 60s. While this is not always possible, it’s also not all bad news. We actually have the ability to take control of our financial future, no matter how old we are. 

At NJM Wealth Preservation Strategies, we pride ourselves on guiding you through the most important financial decision you will make in your life – planning your retirement.

As a trusted Fiduciary advisor, Nic J. McLeod is a second-generation Wealth Preservation Specialist with 20 years of experience. By working with Nic and his team of professionals, you can have confidence, security and peace of mind knowing that your financial future is being monitored and managed actively and effectively.

Contact us here today to set up your complimentary consultation.