How to Build Wealth in Retirement
Retirement is a major life accomplishment and can mean any number of things to different people.
For many, however, it means the freedom to do whatever it is you enjoy most. This may include never working again, spending more time with family, enjoying your hobbies, traveling more, or even continuing working at your profession part-time, but without the dependency on your previous full employment income.
For some, retirement may last nearly as long as their employment years. Therefore, you will want to continue to build your wealth during retirement.
You have established a long-term financial plan and stuck with it to reach your retirement financial goals. Don’t abandon your plan just because you have reached retirement. With life expectancies on the rise, you will most likely still need your investments to grow post-retirement so that you do not outlive your assets.
Shift Focus to Safety and Income
Your long-term investment plan may need to be adjusted as you shift from employment income to a greater dependency on investment income and savings. Accordingly, you may need to adjust your investment portfolio to focus on stable investments and the appropriate income level to support your expenses and lifestyle requirements.
Maintaining a diversified investment portfolio during your working years has probably been essential to allow you to weather the decades of market ups and downs and accumulate the assets you need for a comfortable retirement. Maintaining diversification is even more important in retirement as an overly focused portfolio could be negatively affected by a post-retirement market downturn – and you won’t have the ability to make up losses with employment income or have the luxury of time to allow the market to recoup its losses.
Establish a Spending Budget
In retirement, it is even more important than ever that you commit to a spending budget that is within your means.
While initially retirement may bring the euphoria of long-dreamed-of freedom, don’t try to fulfill all your retirement wishes immediately. Establish a budget for regular expenses. Then make plans that accommodate additional travel and lifestyle goals without impacting your long-term financial viability.
Continue to Work with A Trusted Financial Professional
Working with a financial professional has likely been key to establishing your long-term financial goals and enabling you to retire comfortably. It is even more important now to keep working with a financial professional to ensure that you make the required adjustments to your plan so that you can continue to build wealth and enjoy your retirement years free of financial stress.
Build Your Wealth with Bloom
Are you looking for a personal investment management service that can help you build your wealth during your earning years and allow you to retire with peace of mind knowing that you are well taken care of? For over 25 years, our team at Bloom has provided actively managed, customized Canadian and U.S. dividend-paying portfolios for wealthy individuals, family offices, foundations, corporations, institutions, and trusts.
We invest in income-generating investments, specifically dividend-paying stocks, which can help our clients generate income if needed, and growth—opening the door for a financially stable and secure retirement.
For more information, contact us today. Call us at +1-416-861-9941 or email us at email@example.com
This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.