Retirement is a significant milestone in life, and preparing for it requires careful planning and strategic financial management. Knowing when to dial back the risk in your portfolio can help protect your portfolio and keep you on track in retirement. In the latest episode of the Money Wisdom podcast, financial planners Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® answer a question about when to adjust your investment strategy as you approach retirement.

Jake and Nick discuss the common concerns faced by individuals nearing retirement. The shift from growth-focused investments to income and security is a crucial aspect of retirement planning. As Jake points out, “Retirement is a journey, not a destination.” This perspective emphasizes the need for a well-structured plan that aligns with your retirement goals.

Diversification and Risk Management in a Retirement Portfolio

One of the keys to protecting your retirement is having a diversified portfolio that considers tax implications and risk assessment. Nick explains, “It’s important to assign purpose to dollars and to break down people’s mindset of thinking.” This involves segmenting your portfolio into different buckets for growth, income, and safety, ensuring that each part serves a specific purpose in your retirement plan.

The Importance of Ongoing Risk Assessment

There’s also an even greater need for ongoing risk assessment when you’re getting close to retirement. As Nick notes, “Nobody wants to lose money that they didn’t have to lose because they were taking risks they didn’t have to take.” Understanding your risk tolerance and adjusting your investment strategy accordingly is vital to maintaining financial stability in retirement.

Tools to Evaluate Your Retirement Portfolio

To assist you in evaluating your retirement readiness, we have the “Are You Ready to Retire Starter Kit.” This resource provides valuable insights into market timing and other essential factors to consider when planning for retirement. Listeners can request the kit by texting “KIT” to 800-757-0436.

Whether you’re just beginning to think about retirement or are already in the midst of planning, it’s crucial to get professional guidance on aligning your investments with your retirement objectives. Don’t miss the opportunity to gain insights and take the next step toward a secure and fulfilling retirement.

Here’s some of what we discuss in this episode:

• The ​differences ​between ​investing ​and ​saving ​for ​retirement ​versus ​investing ​and ​saving ​in ​retirement.

• What ​sort ​of ​qualities ​do ​your ​investments ​need ​to ​hold ​in ​retirement?

• Structuring plans ​from ​an ​investment ​standpoint based on risk tolerance.

• Planning can help you identify how much risk you need to take and determine whether you can dial it back.