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As retirement nears, folks tend to become very focused on how they're going to spend their money. But figuring out how you're going to spend your time in retirement is every bit as important. According to a 2021 study by Edward Jones and Age Wave, the pandemic renewed the emphasis that people place on purpose. In fact, their survey found that post-pandemic, "Ninety-two percent of retirees now agree that purpose is key to a successful retirement."
Folks who follow a well-defined financial plan usually have some important dates circled on their calendars. At the beginning of the year, you probably plot out some annual goals. In the spring, you gather last year's info for tax season. In the summer, parents start budgeting for family vacations and the upcoming school year.
At Keen Wealth Advisors, once we’ve created a financial plan for a client, we next work to determine the proper ratio between stocks, bonds, and emergency reserves they need to make that plan work. Our strategy of portfolio diversification, quantitative stock analysis, periodic adjustments, and short-term cash buckets for income needs is designed to help generate wealth for a family over decades, not days.
Seniors may have noticed that the Social Security Administration (SSA) has redesigned the periodic statements it sends about your benefits. Perhaps one of the most helpful changes is that these statements now explain how much your monthly benefits will be depending on when you decide to take Social Security. In my experience, some seniors head into retirement with slightly unrealistic expectations about these benefits. These new statements will help folks get a better idea of where their benefits will fit in to their overall retirement plan.
Successful retirement doesn't just happen. Getting the most out of your golden years takes lots of hard work, years of careful planning, and preparation for the emotional, physical, and financial changes you're going to go through once you stop working.
After slogging through a year of lockdowns, bitter politics, and economic hardships in 2020, 2021 hasn't quite proved to be the big bounce back to normal we were all hoping for. We're still fighting many of last year's fights, COVID-19 is surging again, and we could be entering a contentious new political phase both at home and abroad.