Retirement planning doesn’t end when you retire. Life is full of uncertainties and retirement is no different. Post-retirement, there are few things every retiree needs to evaluate.
Long term investments
The purpose of a retirement corpus is to generate income for a period of at least fifteen to twenty years. It is crucial that a long term approach is followed. So, any withdrawals from the corpus must be sustainable. The investment strategy should be oriented to the long term.
Medical Expenses
Age can result in medical complications. Healthcare, as we’re all aware, is getting more expensive and life expectancy is on the rise. A solid retirement plan will account for these factors. Chronic conditions entail frequent expenses which should be factored into lifestyle expenses. Providing for emergencies and unforeseen medical expenses will add a layer of security.
Risk Appetite
Like many other factors in an investor’s profile, the risk appetite is not static. Over time an investor may gain confidence and want to take a more aggressive approach or may become more conservative and moderate the risk levels. These investment decisions should be anchored to the actual retirement needs and overall asset allocation. This will ensure that the retirement goals are not compromised.
By taking these factors into consideration, a retirement plan can be more effective. It always makes sense to have professional guidance from an investment advisor or financial planner in sensitive matters like these.