Learn whether or not you are on the right retirement track and how to avoid making mistakes as you enter the financial red zone. The economy has picked up for some. Interests rates are starting to go up which will reward savers. Bonds and bond funds will go down when interest rates go up.  

 

Main Questions Asked:

Is my investment strategy able to mitigate risk in a market downturn?

What do I need to pay attention to as I near retirement and enter retirement?

Do I have too much exposure to the market?

 

Key Lessons Learned:

The Financial Red Zone

• Why people need to pay attention in this stage of life? Because time is different. Save 10%-15% while working to live like no one else.
• Within 10 years of retirement, you want to transition to preservation mode. There have been times when it has taken 12-14 years to recover from a downturn.
• Have some of your assets set up so you can tap into it for income. There needs to be strategies and changes when you enter the financial red zone.

 

Common Red Zone Financial Mistakes

• Taking too much risk. There is no reason to take unnecessary risk. You can have a balanced portfolio and have some of your money safe.
• Not having a plan. You need a financial plan. You need an advisor that talks about a financial plan, not just investments. If you don’t have a financial plan, you could be in trouble.

 

The Fun and Easy Part of the Financial Red Zone

• The reward for all your hard work is here. You deserve a quality retirement. You probably have a retirement age in mind. You have anticipation of your retirement.
• You also have predictable retirement income streams. Social security and pensions.
• You are more likely to be out of debt and have a paid off mortgage.
• You also have a clearer picture of what you want to do with your life. Write out your dream retirement if money were no object.

 

Listener Questions

• Emergency fund? Three to six months expenses. Start small when saving for your emergency fund. Set up automatic payments.
• The money should be safe such as in the bank or a money market account.
• An emergency is a medical emergency or something with your home or vehicle. Once tapped into, focus on building it back up.
• 401k money after retirement? Who is the client? Usually it’s the company you work for. Take the money out and roll it over to an IRA. Work with a fiduciary who is legally required to invest in what is your best interest.
• Start brand new and fresh after a divorce. Start with a brand new financial plan, and make sure you have your emergency fund and are invested for your retirement. You need a protection and investment plan.

 

Links To Resources Mentioned

Money Map Retirement Review

1-800-757-0436

Thank you for listening!