You probably expect to lose some physical agility or strength as you grow older. But for some reason, most of us find it hard to accept that our mental acuity will also begin to decline. Unfortunately, this can lead us to make financial mistakes once we hit our retirement years, as older people tend to mismanage their money or even fall victim to financial predators.
If you want to keep your mind sharp, and prevent future financial mistakes, remember to take these five steps now as you approach retirement.
Exercise daily. In one research study after another, evidence has pointed to a link between exercise and improved cognitive processing. Now, during your working years, you should try to fit in a walk or bike ride every day. Once you’ve retired, you may find that you have even more time to exercise. Of course, remember not to overdo it and injure yourself.
Set up a living trust. Everyone thinks it won’t happen to them, but the truth is that some of us will develop dementia or Alzheimer’s as we age. There is no way to know whether these conditions will strike you, so it’s better to be safe than sorry. In the event of your incapacitation, a living trust will transfer control of your assets to a trusted friend or family member of your choosing. Create the living trust now, while you’re able to make sound decisions.
Streamline your investments. In the past, you might have engaged in more risky investment avenues. This helped you build significant capital during your working years, when you had time to make up for any mistakes. But once you retire, it might be time to adopt a lower risk tolerance and sink your money into safer investment options.
Establish a stream of income. As you grow older, you need to know that your income is stable and dependable. Check your retirement plan for unpredictable variables. If it doesn’t feel comfortable, call us for help. We can show you ways to establish a stream of income in retirement.
Don’t be afraid to ask for help. Financial planning involves a maze of complicated decisions, and you shouldn’t place that entire burden upon yourself. One of the best ways to create a secure flow of retirement income, and protect your savings, is to seek the advice of a skilled financial planner. Call our office to schedule a consultation, and see the difference skilled guidance can make!