While you and your trusted advisor will work to create an overall retirement strategy, this does not mean that you will not need to make changes along the way. So, the question remains: When should you revisit your retirement strategy?
Situations in which there has been a major change in your or your family’s lives are good times to reconnect with your financial professional. Some conversations will happen at set times, such as when you or your spouse reach key ages. For example, at the age of 59 ½ you can withdraw funds from a Traditional IRA without restrictions and penalties. At age 65 you become eligible for Medicare and at age 72 you will need to address Required Minimum Distributions (RMDs) from your retirement accounts.
There will be times when a life event requires a more in-depth discussion and analysis for your retirement plan. Some examples of these types of events include:
- Career – When you have had a major change in your career, that is a good time to talk about your strategy. That change can be getting a new job or leaving your old job. It can also be a promotion or a raise. Starting or selling a business enterprise is another cause for conversation.
- Risk – Has your risk capacity changed? Your ability to weather a financial risk, may have shifted as the value of your assets have changed, altering your wealth profile.
- Asset Purchase – Have you purchased or sold a major asset such as a house or business?
- Debt – Have there been any major changes to your debt profile, whether it is an increase or a decrease?
- Estate Planning – Has there been a major change of mind about your estate planning strategy, including making changes to your beneficiaries or altering gifts you intend for charities and other entities?
- Health – Have there been changes to your health? This includes mental and emotional health.
There are other reasons to take another look at your financial strategy that may have nothing to do with your financial situation directly, but instead relate to outside factors. Some examples may include:
- Taxes – A major change in tax policy or law may have taken place.
- Professional Team – You may have made some changes to your legal and financial team or plan to name a different executor to your will.
- Household – Perhaps you have had a change in your household that has upsized or downsized your lifestyle.
Finally, there is always the possibility that it has been a year or two and it’s just time to look over your strategy and see if there’s anything that needs your attention. Whatever the reason, big or small, your trusted financial professional will be more than happy to help you through whatever concern or transition you are facing.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any