Three Solid Tips for Your 2016 Retirement Plan


Written by: Jon McGraw

As the new year kicks off, many people get the overwhelming feeling that broad changes should be made, in work, life and, especially, planning for retirement. While you should definitely rethink your portfolio for 2016 and see what you can do to optimize it, here are three tips on how to boost your retirement plan—and planning—in the near future:

Create a Fund for Unexpected Expenses

When many people think of unexpected expenses leading up to retirement, they think of a broken furnace, having to buy a new roof or even resurfacing a pool. However, many of the largest unexpected expenses pre-retirees face are health-related, with large-scale dental care being one of the most prominent and common costs. While some studies show that people pay as much as $250,000 for health costs in retirement, this number doesn’t reflect costs you can accrue before retirement even starts.

To anticipate any big-ticket health expenses that might cause a retirement planning hiccup, create a fund to specifically pay for unexpected costs. And while you’re at it, practice preventative care and see the dentist or doctor before you’re facing a full-blown crisis.

Keep Calm and Stay the Course

Each day, you can find a number of business pundits talking about the markets, how they’re good, bad and everything in between. Despite the constant chatter that the stock market is ready to collapse, stay the course with your long-term retirement goals. If you have questions or concerns, reach out to your Financial Advisor or Wealth Manager. With still-unsteady Asian markets and the expectation that the Fed is going to raise interest rates multiple times this year, know that while your portfolio might need rebalancing, rash moves based on emotion can derail your entire retirement strategy.

Drown Out the Digital Noise

Beyond the TV pundits and news site headlines, most investors are using apps to keep them up to date on market, tax and even retirement trends. According to a 2013 Martini Media survey, almost 60% of financial firms planned to leverage digital tactics that year, with slightly fewer planning on leveraging social media and online video. In short, the financial world is becoming more enmeshed in our daily lives, and it’s changing the way we make decisions about retirement. Instead of getting caught up in the digital trend, feel free to turn off notifications or delete apps altogether, if you feel they’re giving you investor’s anxiety.

A Chance to Change Your Habits

Each January brings a much-needed chance to change your retirement planning habits, as you end the previous year with a fresh set of knowledge about what works and what doesn’t. Tackle your 2016 retirement planning with vigor, but stay steady in how—and how much—you save.

If you would like to talk with us about outsourcing many of the complexities found with retirement planning, call Vince Pastorino at (816) 285-9000.

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