{"id":15678,"date":"2023-08-14T08:21:12","date_gmt":"2023-08-14T13:21:12","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=15678"},"modified":"2023-08-14T08:22:08","modified_gmt":"2023-08-14T13:22:08","slug":"how-to-help-prepare-for-an-unpredictable-retirement","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/how-to-help-prepare-for-an-unpredictable-retirement","title":{"rendered":"How to Help Prepare for an Unpredictable Retirement"},"content":{"rendered":"

As we celebrate National Financial Awareness Day, we must recognize that retirement planning is not a one-size-fits-all process. While retirement is an exciting phase of life, it can also be unpredictable, especially in today\u2019s ever-changing economic landscape.\u00a0<\/b><\/p>\n

In this blog, we will delve into essential tips to help you secure a financially stable future. So, let\u2019s get started and discover what you need to know to achieve a more prosperous retirement!<\/span><\/p>\n

The Importance of Financial Awareness<\/b><\/h4>\n

Financial awareness holds a paramount importance for retirees facing an unpredictable retirement landscape. Having a solid grasp of one\u2019s financials and investments becomes critical. A<\/span> recent study by the Federal Reserve<\/span><\/a> highlights the challenges faced by individuals with low levels of financial literacy when it comes to saving for retirement. The study reveals that low financial knowledge leads to more financial decision-making challenges and investment management.<\/span><\/p>\n

However, there is a silver lining: retirees with additional private income, such as investments, reported higher levels of financial well-being than those relying solely on Social Security. This emphasizes the crucial role of financial awareness in helping to shape a more secure retirement.<\/a><\/span><\/p>\n

Being financially aware helps to empower retirees in making informed decisions, identify potential pitfalls, and seek opportunities aligning with their goals. Through education and awareness, retirees can proactively adjust their financial strategies, helping to ensure a more secure and stable retirement despite uncertainty. Let\u2019s take a deeper look at some tips to help you get started.<\/span><\/p>\n

1. Engage in Comprehensive Financial Planning<\/b><\/h4>\n

A great starting point for retirement planning is seeking advice from seasoned Fiduciary advisors. Surprisingly,<\/span> a retirement study by Retireable <\/span><\/a>found that more than two-thirds (67%) of respondents have not met with an advisor to create a financial plan. Working with a fiduciary advisor will only help set you up for success in your golden years.<\/span><\/p>\n

Your chosen F<\/span>iduciary advisor should help you create a comprehensive financial plan considering your financial situation, investment goals, risk tolerance, and long-term objectives. However, it doesn\u2019t end there. Regularly reviewing and adjusting your financial plan is crucial to preparing for an unpredictable retirement. Life events, economic changes, and personal circumstances may require modifications to your strategy.\u00a0<\/span><\/p>\n

Stay in touch<\/a> with your Fiduciary advisor and inform them of any significant changes that could impact your retirement plans. By staying proactive, you can help enhance your financial security and be better prepared for the future.<\/span><\/p>\n

2. Diversify Your Investment Portfolio<\/b><\/h4>\n

Preserving your retirement funds becomes more attainable with a <\/span>diversified investment portfolio.<\/span><\/a> Diversification aims to help reduce asset-specific risk \u2013 that is, the risk of owning too much of one stock (or stocks) in general, relative to other investments.\u00a0<\/span><\/span><\/span><\/p>\n

A great example of diversification was when we entered a bear market in 2022.<\/span><\/a> What helped investors weather the storm was by following conventional wisdom and not putting all their eggs into one basket. By diversifying and spreading your investments across different assets, you can help reduce the impact of potential losses and increase the chances of overall financial stability.<\/span><\/p>\n

However, it doesn’t eliminate market risk, which is the risk of owning that type of asset at all. <\/span><\/span>Investments promising quick and substantial returns often come with higher uncertainty. Striking a balance between conservative and growth-oriented investments can help safeguard your wealth, especially during economic turbulence. Diversification remains a vital pillar of a robust retirement plan.<\/span><\/p>\n

3. Create a Contingency Fund<\/b><\/h4>\n

An essential aspect of retirement planning is having a contingency (or emergency) fund set aside. <\/span>More than half of Americans don\u2019t have an emergency fund.<\/span><\/a> A contingency budget is a great tool that helps you plan for the unexpected. Some of the common reasons why someone might dip into their savings include:<\/span><\/p>\n