Five Things For Retirees To Consider In The New YearSubmitted by InFocus Financial Advisors, Inc. on December 27th, 2017
2017 was by all measures a banner year for the markets and the economy. A new year presents opportunity for investors to re-align their portfolios and get a fresh start on planning to ensure their retirement success. Below we have compiled five planning items to consider as you review your retirement strategy to start the new year.
- Monitor your Drift – With major stock averages up significantly year to date, investors portfolio are likely to have been skewed from the start of the year. The stock portion of your portfolio will have most likely outperformed the other holdings resulting in a larger stock position than where you started the year. This can cause your portfolio to become a little more aggressive than you might like. A re-balance, or re-allocation may be in order.
- Learn from your Taxes – Were you surprised at how much you owed in taxes? Possibly since some of your Social Security became taxable. This can cause taxes in retirement to get quite pricey. What accounts did you take 2017 distributions? Looking at your tax return may prompt you to re-consider where they come from in 2018.
- Check your spending – Was your spending in line with your budget last year? If you under-budgeted, are you planning on cutting back or should to revisit your investments to plan on taking more?
- What’s my age again? – Do you have those things called RMD’s coming up? You must start taking distributions from tax-advantaged accounts in the year you turn 70 ½. Make sure you know when this will affect you, and maybe more important how it might affect your tax situation.
- Thought about any big-ticket items? – No better time of year to examine what might need to be replaced next year or the next few years. The cold weather certainly puts the stress to things like heating systems, vehicles and other things we wished never needed to be replaced. Thinking about the potential future replacement of these items is important to consider and include in your retirement strategy.
Here is to hoping for another banner year in the stock market, and a continued growing economy. Unfortunately, both of those things remain out of our control. Use the new year to review the items that pertain to you and control what you can control. If you have any questions about these planning items, feel free to schedule your complimentary retirement (no obligation) consultation online at www.retireinfocus.com or attend one of our community education events throughout Delaware and Maryland. Dates and times can be found at www.retireinfocus.com/events.
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Investors cannot directly invest in indices. Past performance does not guarantee future results.