Retirement brings a shift from accumulation to decumulation, requiring a new strategy to support spending, manage risk, and sustain lifestyle over a potentially lengthy retirement period. A financial advisor can aid in selecting investments and managing income streams. It’s crucial to establish a plan before focusing on investments. The “bucket” strategy divides assets into near-term, intermediate-term, and long-term buckets to support different retirement goals. Insurance planning and estate planning are crucial factors in a comprehensive retirement plan. Holistic retirement planning aligns investments with spending needs and anticipates risks to ensure a secure and peaceful retirement. Expected expenses and lifestyle preferences should guide savings and investment decisions in retirement. Retirement planning involves understanding how you want to live and tailoring your financial strategy accordingly.

Risk in retirement goes beyond market volatility to include the risk of withdrawing funds during market downturns. Sequencing risk can erode savings quicker than expected, necessitating a strategy that prioritizes stability and liquidity for near-term needs while incorporating growth-oriented assets for long-term goals. Insulating against risks like healthcare costs and unexpected expenses is crucial to maintaining financial security in retirement.

Retirees should approach managing savings with intentionality, aligning investments with personal goals, incorporating flexibility, and anticipating potential risks. A well-designed retirement strategy should support the desired lifestyle and provide peace of mind. Retirement planning goes beyond reaching a dollar amount to understanding and achieving the desired lifestyle in retirement. Email [email protected] with your financial questions for future columns.

Read more at Yahoo Finance: With a Shorter Timeline, How Do I Manage My Money Once I’m Retired?