One of the most common concerns about retirement is running out of money when you should be relishing your golden years. The harsh reality is that even if you have saved responsibly your entire life, it still doesn’t guarantee an enjoyable retirement. There are certain things, such as unplanned medical expenses and fiscal downturns that could end up becoming financial drains on your nest egg.
With this in mind, AOG Wealth Management, your experienced financial advisor in Washington, DC and Northern Virginia, shares three ways that can help provide that much needed buffer during your retirement:
1. Prepare for Inflationary Trends
In the last 30 years, average prices have doubled, and there is no indication that the trend will end anytime soon. As such, you need to consider how far the value of your savings may drop in the coming years. Over all, consumers have seen price increases of about 3% each year. Use this figure to guide your saving habits and strive to save more than you normally would.
2. Maintain Your Stock Investments
Your invested stocks can provide a cushion to ease the bite of inflation. According to a Wells Fargo report, the potential return from your stocks is more likely to outpace inflation when compared to the long-term returns from bonds or cash. That said, you should consider investing more in stocks even in retirement. In fact, some experts recommend having up to 40% of your portfolio in stocks during retirement. As top providers of financial planning in Washington, DC and Northern Virginia, we can offer you sound advice and guidance.
3. Don’t Be in a Hurry to Collect Social Security
Social security is your go-to defense against running out of money since the payments continue for the rest of your life. Nevertheless, if you delay taking this payout for a few years, your monthly check could be nearly twice as much. This is because you can get up to an 8% increase for every year that you delay.
Let your Great Falls wealth management experts work with you today to help create a solid financial plan for your retirement. Our asset management services are unique to each individual based on personal goals and prevalent conditions.
Schedule a no-obligation complimentary consultation with us today to know more about our services, and how they can benefit you. Simply fill out our form or call us at 1-877-600-3573 to get started.