Nearing Retirement –Put Your Plan To Work

When you retire you’ll need to depend on the investments you’ve been nurturing for years and, for the first time, you’ll be spending from those savings rather than adding to them. A solid financial plan will help you keep your savings on track as you get closer to being free of the nine to five.

As you near retirement, it may be time to reassess your current financial situation. If you’re in your fifties and underfunded, you might need to bulk up your savings strategy. Catch-up contributions to your traditional or Roth IRA can help you reach your savings goals fast, and the government allows those 50 and older to contribute thousands more to their savings each year. Other strategies include changing your retirement date. Delaying your retirement by just a few years gives you more time to add to your investments and decreases the number of years you’ll need to live off of all you’ve saved.

If you’re on target with your savings, then now is a great time to look ahead to the coming years and make adjustments. Begin to strategize how you will withdraw your funds. You might consider laddering your CDs to take advantage of different rates and increase your financial flexibility, look into annuities that can keep you receiving a lifelong stream of income, and consider rebalancing your portfolio to include more income-generating elements like stocks and bonds. Whatever your goals, this is the best time to recalibrate your plan and make sure you’re on your way to comfortable retirement. Simsbury Bank can help you decide how to tailor your retirement savings plan and develop a retirement income management plan.

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