FINANCIAL FOCUS: Investment strategies for each of life's ‘seasons'

Published: Wednesday, September 25, 2013 at 18:46 PM.

Phase three: Ramping up for retirement —When you reach the mid-to-later stages of your working life, you may find you have more financial resources available, as your earnings may have increased significantly, your children have grown and your mortgage may even be paid off.

If you are not already doing so, “max out,” if possible, on your 401(k) and IRA. And if you still have money available to invest, you may want to look for other tax-advantaged retirement vehicles.

Phase four: Reaping the rewards —Now it’s time to enjoy the results of your lifetime of hard work and many years of saving and investing. You may have to tap into your retirement accounts, so you’ll need to choose a sustainable annual withdrawal rate.

The amount you withdraw each year from your IRA and 401(k) depends on a variety of factors: how much you’ve saved, the lifestyle you’ve chosen, your estimated longevity, how much you have available from other sources, and so on.

Phase five: Examining your estate plans —During your retirement years, if not sooner, you’ll want to review your estate plans so that you can leave the legacy you desire. If you have a need to create or update your legal documents, such as a living trust and durable power of attorney, you should consider consulting a qualified estate-planning attorney.

You’ll need to make the appropriate financial and investment decisions at many different times over the years. This may sound daunting, but with diligence and discipline, you can discover the paths to take as you move through the seasons of your life.

Joe Faulk is a financial adviser in Crestview.



1 2

Reader comments posted to this article may be published in our print edition. All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.

COMMENTS
▲ Return to Top
 

Local Faves