Market and economic conditions may have you worried about your retirement investments and timeline. If you planned on retiring in the next 10 years, you may be wondering how recent economic events could delay your plans. If you follow some of these steps, you could be on your way to protecting your retirement goals.

Don’t underestimate the value of a plan

10 years away from retirement is the perfect time to get serious. It allows you to optimize your cash flow and investments while still in the accumulation period. You can also begin to create a plan for the distribution phase when you’ll need to withdraw from retirement accounts to cover your living expenses.

Understand your portfolio risk level and tolerance for loss

A lot of people have 401(k)s that have been on autopilot for decades. And as the stock markets have done well over the years, people’s investments have gotten riskier as stocks, namely high-growth stocks, became more heavily weighted in their accounts.

Diversify properly

Have accounts for specific goals such as the short term, medium term, and long term. Also, have some accounts that hold safe assets with low growth potential but low downside, along with other accounts that hold more aggressive assets for the long-term.

Develop realistic goals

Try to figure out what your lifestyle will look like throughout your retirement. Ask yourself, “what do I want to do? When do I want to do it?” And put a cost to those things so you can build a “spending plan”, which differs from a budget. Too often people come to us hesitant to spend any money in retirement. But a proper retirement can empower people to spend and enjoy themselves during their retirement years.

Understand the financial transition as well as the social, emotional, and mental transition that comes with retiring

People spend 30 to 40 years getting up and going to work, being around people, and having a preset purpose and direction. I’ve seen many people struggle with having to define that purpose themselves, especially when they don’t have a group of people around to socialize with that came during their working years. My advice is to actively find that purpose. Develop and rediscover passions. Do what you love. And stay active both physically and mentally – people’s minds can change rapidly if not exercising their mental muscles.

Keep an eye on expenses

Reassess how you’re doing in terms of spending. Are you on track with your spending goals? Are you spending a little more or less than expected? How does your spending plan fit with your overall retirement goals?

Don’t chase returns

Managing volatility during and leading up to your retirement years when you’re drawing from your accounts is crucial in making sure your money lasts. If you don’t, you may not be able to live the life you planned for in retirement.

In a time when volatility and uncertainty are at all-time highs, having a financial professional by your side who knows how to navigate this economy and these markets can be the difference between cutting corners and compromising on your retirement goals, or thriving to meet and exceed your retirement dreams. Sign up for a complimentary review of your retirement situation today to get started.

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