Q: I’m retired. How can I keep my savings working for me?
A: You’ve spent many years saving in preparation for retirement. Now that you’ve arrived, there are still decisions to be made regarding how to turn your retirement savings into retirement income. Just because you’ve begun withdrawing does not mean you must stop earning.
Here are some of the ways you can put your retirement savings to work.
Invest
This one is rather obvious. However, investing in retirement comes with some pitfalls and caveats. Turning savings and fixed income into variable income requires a special balance unique to your situation. Talking with your financial advisor can help you choose between options such as retirement income funds, real estate investment trusts, annuities and more.
Reserve
Sometimes protecting what you have can be as important as earning. Placing resources in a cash reserve can ensure you have access to easily withdrawable short-term liquidity. These funds can be shielded from the effects of market declines while still gaining interest through low-risk money markets. Safeguarding immediate funds from volatility can allow your larger retirement savings to recover from changes in the market without restricting cash flow.
Work
Yes, you read that correctly. Retirement doesn’t have to mean the absence of work entirely. Rather, it can be an opportunity to maintain an active lifestyle and pursue passions you were unable to explore throughout your career. By investing your time in something you love, you can secure supplemental income and experience things you may have always yearned for but did not necessarily have time to enjoy.
Next steps
Your days of earning are far from over. Keep these tips in mind to maximize your retirement income:
- Work closely with your financial advisor to keep your investment strategies aligned with all of the changes in your life, even if everything is going according to plan.
- Don’t lose sight of what you need now and ensure that no matter what your strategy is for your savings, you always have access to enough funds available for withdrawal.
- Keep track of where your assets are and make sure you strike a balance between long-term gains and short-term liquidity to both prolong the lifespan of your savings and meet your immediate needs.
- Remember you are in good hands and your advisor is here to make sure you are able to enjoy your retirement without the burden of financial uncertainty.