I’m not sure how many Canadians are open to managing their retirement plans, including their investment portfolios, in retirement. It can be fun if you enjoy doing it and have the knowledge and skills to do so. However, it’s considered work for other retirees who would rather do something else in retirement. How much time and effort you plan to put into managing your retirement finances during retirement should be decided years ahead of retirement to ensure a smooth transition.
Here are three ways to plan your retirement portfolio ahead of time. Get financial professionals to help with your retirement plan
Ahead of retirement, you might meet with your professional financial advisor or financial planner perhaps once a year or whenever you have major changes in your life that will affect your finances, such as your savings plan. This is one of the most hands-off ways to plan for retirement.
Essentially, you’re relying on the professional training and experience of your financial advisor to help you achieve your retirement goals, including figuring out the balance and investment returns you need and the withdrawal rates. Some people even have multiple financial advisors. It makes sense because some financial advisors are particularly knowledgeable in certain areas, such as financial investing and tax planning. Will you take a passive-investing approach in retirement?
While your investment plan may have required more active involvement before retirement, you might wish to transition to a more passive-investment approach so that it’ll be simpler for you to manage your retirement portfolio in retirement. You should make the transition over time, may be over five years before retirement to ensure you’re not selling at a bad time such as during a financial market crash. What I have in mind is perhaps transitioning your stocks and bonds portfolio into exchange-traded funds […]
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