Getting engaged later in life is an exciting time, but it requires different financial planning conversations. With blended families, different retirement timelines, and evolving goals, couples in this situation face unique challenges.

In this episode of the Money Wisdom podcast, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® break down how your relationship with money changes as retirement nears and why your financial plan should evolve right alongside it.

Shifting Your Financial Approach

A common scenario we see is when one spouse is close to retirement while the other still has several working years ahead. This dynamic can require more complex financial planning, raising several important questions: How do you merge financial plans? How do you balance growth and security? How do you ensure that both of your retirement goals are met?

One of the biggest transitions in retirement is moving from a growth phase to an income phase, where your focus is on turning a lifetime of savings into a lifetime of income. This shift requires a new mindset and a well-structured plan to help ensure financial stability.

Balancing Growth and Security

It’s important to recognize that what got you to retirement isn’t necessarily what will get you through retirement. Many retirees struggle with the idea of either taking too much risk or playing it too safe. The reality is that a successful plan balances both. Your investment strategy should align with your financial needs, which may include keeping short-term funds in low-risk assets and long-term funds in higher-risk investments for growth.

Assigning Purpose to Your Money

By diversifying your money, you can help protect against market volatility while still allowing for growth. One of the most effective ways to manage risk is through a bucket strategy:

• Safety Bucket: Money that is not exposed to stock market fluctuations, ensuring you have funds available regardless of market conditions.
• Growth Bucket: Investments designed to outpace inflation and support your long-term financial needs.
• Cash Reserve: Emergency funds for short-term needs, but not so much that inflation erodes your purchasing power.

Financial planning as a couple later in life requires careful coordination, balancing growth with security, and a strategy tailored to your unique needs. A well-crafted plan may be the first step to building the life you envision together.

Are you wondering if you’re ready to retire? Get your free Are You Ready to Retire? Starter Kit by texting “KIT” to 800-757-0436.