As summer winds down, it’s the perfect opportunity for retirees to take a step back and revisit their financial goals. Conducting a mid-year financial check-up can allow you to make any necessary adjustments before the year ends. Here are five easy steps to ensure your retirement plans are right on track:
1. Give Your Budget a Quick Check-Up
Your budget is the foundation of your financial health, especially in retirement. Think of it as the roadmap to your financial health. Have your expenses been in line with your expectations? Identify areas where you might have overspent and look for opportunities to cut back. An effective budget is crucial for maintaining financial stability in retirement and adjusting your budget now can help you stay on track for the rest of the year and make your savings last.
2. Review Your Savings Accounts and Income Sources
How are your savings holding up? Check the balances in your savings and emergency accounts to ensure they can cover any unexpected expenses. If not, consider adjusting your budget to allocate more funds towards these accounts. Also, revisit your retirement income sources like Social Security, pensions, and annuities to see if they’re meeting your needs. You might find opportunities to optimize withdrawals or delay Social Security benefits for a higher payout later.
3. Look Back at Summer Spending
How did your summer spending go? If you built up a little debt, don’t worry—now’s the time to address it. Now is the time to address any leftover summer costs and adjust your budget to prevent similar issues next year. Planning for next summer early can help ensure you avoid financial stress during your next vacation.
4. Plan for Holiday Cheer
With the holiday season approaching, it’s wise to start setting aside money each month to avoid a large credit card bill in January. By planning, you can enjoy the holidays without financial stress. Allocate funds for gifts, travel, and other holiday expenses now to keep your finances merry and bright.
5. Review with a Financial Advisor
Before the end of the year, schedule a meeting with your financial advisor to review your retirement accounts. Discuss your 401(k), required minimum distributions (RMDs), Roth conversions, and capital gains versus losses. This is also a good time to evaluate your investment strategy and make any necessary adjustments to ensure your portfolio aligns with your risk tolerance and long-term goals. Market conditions may have shifted, so it might be necessary to rebalance your portfolio.
As a retiree, it’s important to manage risk and ensure your investments provide both growth and income. Consult with a financial advisor, like Anchor Wealth Management, if you’re unsure about any changes you should make.
Bonus Tip: Use Budgeting Tools
Consider using a budgeting app like EveryDollar.com to help manage your finances. These tools can make it easier to track your income and expenses, set savings goals, and monitor your progress throughout the year.
Taking a mid-year financial check-up can lead to significant improvements in your financial future, ensuring you enjoy a secure and fulfilling retirement. So, take a moment to review these steps and sail smoothly into the rest of the year!
Rianna Caswell, Wealth Advisor
Learn more about Rianna and the Anchor Wealth Management Team