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One of the biggest concerns people have as they approach retirement is whether their money will be enough to support them. In addition to providing income, your investments need to help maintain your purchasing power, manage risk, and support your long-term goals.

In this episode of Money Wisdom, Nicholas J. Colantuono, CFP® and Eric Hogarth, CFP® tackle the questions that help determine how your investment strategy may need to evolve.

1. How Much Do You Need to Retire?

Retirement planning is about knowing how much money you need for the lifestyle you want, not just about spending less. In fact, spending often increases during the early retirement years through travel, major purchases, and family activities.

At the same time, you need your investments to provide income and keep pace with inflation for the next 20-30 years. That’s why it’s important to have a realistic plan that accounts for these variable expenses and changing needs over time.

Interested in building a simple, actionable plan for your retirement and investment success? Get your free Money Map book by texting “MAP” to 800-757-0436.

2. Where Are You Now?

A successful retirement plan considers how your spending may change and the rising costs that could affect your lifestyle. To understand where you stand, you must factor in your life expectancy, lifestyle goals, current savings, and other sources of income.

The first step is looking at how you invest your money and deciding whether your strategy can realistically help you achieve your goals. Although these may be difficult conversations, they are necessary to have.

3. Where Are You Invested?

Several factors make up a solid retirement investment strategy. Keep in mind that investing is a highly personal part of the retirement planning process. A good strategy can be different for two people, even if they have similar savings and expenses.

Ask yourself how much risk you are comfortable with and how much of a decline in your portfolio you could tolerate without shifting course. While you can’t control what the market does, you can control whether you interfere with your own plan. You should avoid making emotional decisions during periods of volatility.

With the help of a financial professional, you can build an investment strategy designed to support you over the long term.