Even the super-rich have retirement plans in place despite their immense wealth. Why? Because they know nothing in life is certain, markets can fall overnight, and fortunes could be lost. While billionaires like Elon Musk and Jeff Bezos can afford to lose a billion overnight, most of us are not that fortunate.

 

Retirement planning is essential to any portfolio to ensure you do not have financial worries when you are older. These investments are usually separate diversified funds chosen for their stability, ability to spread risk and performance as they ride the ups and downs of the market over the long term.

 

Another sobering fact is that our money has less spending power than it used to have due to the exponential rise in the cost of living over the last few decades.

 

• We are living longer – your money might not last as long as you think. With modern medicine, people are living longer, so a 20–25-year retirement could now be a 25-35-year retirement. Has your retirement savings increased to cover this?
• Financial security and stability – nobody wants to be stressed about not having enough saved to cover their expenses when they retire. Include the cost of living, unforeseen expenses, and savings in your retirement budget. 
• Buffer against economic turmoil – the markets can be volatile as we’ve seen over the last few years and returns on our investments could match inflation, or even go into the negative, causing us to lose capital. A good retirement plan includes annual inflation-matching increases to ensure your capital stays protected.

 

Avoid carrying all your eggs in one basket. 

Consider separating your investments and your retirement savings. Retirement savings are long-term and invested in different funds than your shorter-term investments. Diversification is key even if you plan on using your investments for retirement along with your personal pension plans and workplace pensions. 

 

Make sure all your bases are covered by chatting with your financial advisor. Ensure your golden years are as financially stress-free as possible, so you can focus on enjoying your hard-earned relaxation. csvhelp@devere-group.com

 

Please note the above is for educational purposes only and does not constitute advice. You should always contact your deVere advisor for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken as a result of reading the above.