Approaching retirement amidst inflation and market uncertainty can be unsettling, but sound financial strategies can help you stay on course. As you near this significant milestone, maintaining a long-term perspective is crucial to safeguard your portfolio and help achieve your retirement goals. Here are some valuable dos and don'ts to consider with the guidance of your trusted advisor from Snow Financial Group in Covington, LA.

 

**Do: Get a Clear Picture of Your Financial Position**

 

Start by tuning out the alarmist headlines and consulting your advisor. Together, assess your financial situation, address your concerns, and devise a level-headed approach to your investments. Your advisor can make necessary adjustments based on your individual circumstances.

 

**Don't: Panic-Sell at the Bottom**

 

Resist the urge to liquidate your investments during a market downturn. Selling everything now may lock in losses and prevent you from benefiting when the market rebounds. While there may be isolated cases where cutting losses is justified, it should not be a knee-jerk reaction to market fluctuations.

 

**Do: Consider Diversifying Your Income Sources**

 

Maintaining a cash reserve equivalent to 12 months of expenses in retirement is a prudent move. This cushion allows you time to evaluate your next steps while helping to preserve your portfolio. One approach involves selling less volatile bonds to generate cash, creating breathing room for your more dynamic investments to recover.

 

**Don't: Dismiss the Idea of Working Longer**

 

Extending your working years, whether full-time or part-time, can grant your investments the time they need to regain strength. This can also help ease the transition into retirement emotionally. If you've already retired, explore options for reducing expenses and adhering to a stricter budget.

 

**Do: Engage in Open Dialogue with Your Advisor**

 

Trust the relationship you've built with your advisor. While you may consider rebalancing your portfolio, it should be part of a comprehensive strategy tailored to your individual circumstances. Remember, you diversify your investments strategically throughout your savings journey, and your advisor can help align your portfolio with your evolving needs.

 

In a fluctuating market, it's essential to set aside emotions when making investment decisions. A long-term perspective will help you weather market ups and downs, allowing you to focus on the exciting journey of retirement.

 

If you're approaching retirement in today's market:

 

- Avoid impulsive investment decisions driven by emotions.

- Discuss your concerns with your dedicated advisor for personalized recommendations.

 

Remember that past performance is not indicative of future results, and all investments carry inherent risks. Diversification does not guarantee profits and may not protect against losses. Rebalancing your portfolio may have tax implications, so always consult with your advisor for informed decisions. At Snow Financial Group, we're here to guide you on your path to help secure retirement.

 

 

 

 

Opinions expressed are those of the author and not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. The information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.

 

While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.