An important shift must occur when you enter retirement: your money mindset needs a reset, and your financial strategies must evolve to match your new objectives. While growth is still important, your focus is now on creating a reliable stream of income — and protecting your wealth in the process.

In this week’s Better Money Boston with WCVB Channel 5, David Shaprio breaks down the essential financial adjustments you should consider as you prepare for this next chapter.

Your Relationship with the Market Is Different

In retirement, your approach to investing in the market should differ from how you invested during your working years, when you could afford to take on more risk. Ideally, this shift in mindset should begin about five to seven years before you retire.

Instead of prioritizing high-risk investments, you may want to adopt strategies that limit exposure to market volatility and preserve your principal. Start by understanding your risk tolerance, then build a strategy that protects your assets while still aiming to outpace inflation.

Retirement Is All About Income

Everything ultimately comes down to income. Without a steady paycheck, it’s crucial to have a straightforward plan to replace that cash flow for the next 20 to 30 years. But your income strategy shouldn’t rely solely on your investment portfolio, it also needs to consider the broader economic and financial landscape.

Start by taking inventory of your expected income sources, whether that’s Social Security, a pension, or distributions from 401(k)s and IRAs. Then, work with a financial professional to create a plan that aligns with your long-term goals.

Set Budget Goals That Fit Your Lifestyle

In addition to covering everyday living expenses, we believe it’s just as important to invest in the meaningful experiences you want to enjoy in retirement. Planning for these moments helps ensure your financial strategy supports the lifestyle you’ve envisioned.

Your advisor will make ongoing adjustments to keep your plan on track, helping you stay within budget while maintaining a sense of security and confidence in your income. Ultimately, it’s about aligning your financial plan with your personal goals.