There are a number of incredible strategy for investing designed specifically to get you to retirement – but what about investing AFTER you have retired, finding ways to make your money continue to work for you while being able to dip into this cash and capital to lead the kind of life you certainly deserve?
Well, turns out that the best investing after retirement strategy options are quite similar to any other investing approach you might be interested in taking with only a couple of interesting little wrinkles that we highlight below.
Factor Risk More Than Ever
When you are young there’s almost no consideration whatsoever to risks that could potentially wipe you out – not only because there’s so much time to continue investing to make up for those losses, but because (usually) you aren’t investing all that much to begin with.
After retirement, however, the investments you’ve made previously in the wealth that you have generated need to be protected as much as possible. You’ll want steady returns that may not be quite the “homerun” you are looking for before, passing up potential game changing opportunities to protect your investment while growing it at the same time.
Plan Five Years In Advance
Another important investing after retirement strategy you want to focus on is looking at your retired life in blocks of five year chunks.
It’s just not reasonable to think of a single investment vehicles or opportunity that could handle a 30+ year retirement from start to finish. The markets going to move, different things are going to change, and you’ll need to be able to roll with the punches (so to speak).
By reassessing your investing after retirement strategy in five-year intervals you’re able to capitalize on opportunities as they become available while getting out of other opportunities that may not be quite as lucrative as they were in the past.
On top of that, you’ll also be able to better align your investments towards your lifestyle and your expenses. You may need slightly riskier investments with potentially higher returns if you are making major changes in your life and need more cash and capital, or maybe you need to downshift a little bit to stay away from risky investments when you have all of your basics (and then some) covered.
Asset Diversification and Inflation Protection are Key
When you get right down to it, one of the most important investing after retirement strategy details you’ll want to really laser in on is the idea of diversifying your assets and protecting yourself against inflation as much as possible.
The last thing you want to do is put all of your retirement eggs in one basket, so to speak, only to find that the market – and inflation – have conspired to wipe out your wealth faster than you ever would have thought possible.
Investing after retirement is all about wealth protection and maintaining your standard of living while opening up the opportunity for increases to your overall wealth – but never at the risk of possibly wiping you out.