In this MarketWatch article, “20 New Year’s resolutions to make your retirement dreams come true,” Harbor Crest Wealth Advisors CEO and founder Michael Hennessy, CFA, CFP®, and other financial advisors give advice for the year. One of Hennessy’s tips? Take less money during market pullbacks.
Market volatility is inevitable but if you can afford to, taking less out when the stock market isn’t doing so hot can be advantageous. Hennessy's other recommendation is to check in on your portfolio allocation. Near-retirees and current retirees may want to adjust how their money is invested — with the help of a financial advisor — by employing income laddering or bucketing approaches, two strategies that could mitigate the risks of compounding losses from market downturns.
Here are financial experts' tips for 2020:
- Discover “found” money.
- Add money to a nondeductible individual retirement account.
- Run a retirement projection.
- Make contributions automatic.
- Plan for your future health expenses.
- Get ahead of consumer debt.
- Increase contributions by 1 percent.
- Explore new accounts.
- Consider life insurance.
- Start planning the nonfinancial parts of retirement.
- Take a “mini retirement.”
- Make “catch-up” contributions.
- Plan your Social Security benefits.
- Create or update important documents.
- Prep your current home.
- Come up with a retirement budget.
- Update your financial plan to be SECURE Act-friendly.
- Take less money during market pullbacks.
- Check in on your portfolio allocation.
- Find ways to make money in retirement.
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