3 Easy Steps Annual Retirement Check-Up

3 Easy Steps Annual Retirement Check-Up

January 17, 2018

If you’re like most people, then once a year, you head to your doctor, regardless of whether you think you may need it at the time. He or she pokes and prods you, gives you a number of tests and asks – and answer – any potential questions you may have. All of this de rigueur for a regular check-up.

Many may not realize it, but when you’re old enough to start saving for retirement – which should be as soon as you start working – the best course of action for maintaining a healthy retirement plan is to schedule an annual check-up for it as well.

So to get you started on your annual savings diagnostic, here are 3 easy steps that you and your financial advisor can take together and use as starting points for your own annual retirement check-up – with no shots necessary:

Step 1: Review your life circumstances and retirement goals

Just like with a doctor, you’ll want to review your current situation with a financial advisor: Has anything significant changed for you since your last review? Newly married or divorces? Maybe you’ve had a child, or are now sending said “child” off to college. Or you may be on the verge of retiring and collecting retirement income. As for your retirement goals: Have they changed at all? Perhaps you’re anticipating retiring sooner or later than you’d originally planned, or your vision of what you’d like to do in retirement have in some way changed. The answers to such questions can definitely have an effect on your retirement planning and how much you’ll need to save.

Step 2: Review your investment strategy and rebalance

Your portfolio’s mix of investments should be reflective of your goals, tolerance for risk and how much time is left before you’ll turn those assets into income. If you haven’t revisited your asset allocation in a while, some degree of adjustment may be necessary.

But even if your like and goals have not changed significantly, the markets, as you are not doubt aware, are constantly fluctuating, so your particular combination of investments can still become unbalanced. In which case you could take this opportunity to rebalance your portfolio and bring your allocations back in line with your overall strategy.

Step 3: Ask yourself: “Can I afford to save more?”

Even if you feel like you’re saving enough as is – it never hurts to save more. Especially when you stop to consider the range of unforeseen circumstances that could arise in your future. Do you have enough set aside for retirement – plus a new roof for your house, or to cover medical expenses in the event of an illness? What if the market declines just before your retirement—and you don’t have time to make up the difference?

By planning ahead and saving more each year, you’ll help your assets grow and compound more quickly – and improve the odds that you can financially compensate for potential curve balls down the road.

So is it time to give your retirement plan a check-up? If so, contact a financial advisor now, and together, you can review the specifics of your situation and ensure that your current savings strategy is still on track to providing a comfortable and secure retirement.

*Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

*No strategy assures success or protects against loss.


Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.

Email me your questions at sunhee.lee@genesiswealthmgt.com or call (201)783-5877. You can also post your question on our Facebook page: https://www.facebook.com/genesiswealthmgt