Once you get through the first year of retirement, you probably think you can coast for the next 30 years. That’s not necessarily true. This is not the time to get comfortable. Things are never that simple in retirement. As you head into year two, it’s the perfect time to assess what you’re doing right and what you may be doing wrong.
“Five years before you retire and five years after are the most important,” says Reid Abedeen, managing partner at Safeguard Investment Advisory Group in Corona, California. “If you have everything in line, you are able to do certain adjustments. There is a big difference between doing them because you want to and doing them because you made mistakes.”
Your circumstances will change throughout retirement, and your finances will need to adapt to those changes. Consider making these updates for year two of retirement:
1. Determine what’s working, what’s not and what needs to be changed. You may need to make changes to your investment strategy, budget and lifestyle. “Things change economically,” Abedeen says. “The markets over the last year have changed dramatically.” Compare your retirement income to your spending, and determine if you need to make any lifestyle adjustments.