Top 5 New Year's Resolutions for the Newly Retired
If you are newly retired, chances are that you are still concerned about whether or not your nest egg will last you your entire life. A recent U.S. News Money column provides these tips for new retirees to help alleviate these concerns:
1. Conduct a realistic assessment of your assets and liabilities. If you don't have a good picture of your total net worth and sources of income, now is the time to make that assessment. It's the not knowing that leads to stress and worry. Even if your financial picture is worse than you thought, you can still take steps to rectify that situation, like finding part time work or moving to an area with a lower cost of living.
2. Create best and worst case scenarios. Project your expenses for the coming year for both best and worst case scenarios, and make a plan on how to address any shortfall.
3. Have a spending plan. Create a monthly budget for the year and stick to it. One of the biggest threats to new retirees' nest eggs is providing financial support for adult children. If you find your income is not enough to cover your own expenses, it's time to cut the kids off.
4. Review asset allocation. The stock market in 2013 yielded returns of almost 30%, so if you were more aggressive last year with your investments it's time to check your asset allocation and take some time to rebalance if the stock portion of your portfolio has grown too large for your risk tolerance level.
5. Plan to live longer. Modern medicine and mindfulness about taking care of our own health means more Americans are living longer, so as you plan for your retirement years, take into consideration that they may be longer than you even think.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0041.