Plan for Retirement During Time of Uncertainty
NEW YORK, October 30, 2023 (Newswire.com) - It’s one thing to put money away for your Golden Years during times of economic stability, but it’s quite another to do so when the economy is shaky. However, there are moves you can make to keep your retirement savings on track during times of uncertainty, including diversifying investments through Yieldstreet.
In the face of market uncertainty, investment portfolio diversification is key. Having positions in a mix of assets and asset classes can shield your holdings against economic instability and reduce overall risk. Alternative investments, such as art and real estate, are increasingly popular due to their low correlation to public markets. The alternative investment platform Yieldstreet has the broadest selection of asset classes available.
Put Off Social Security
While it may be tempting to sign on to collect Social Security benefits as early as possible – full retirement age is 67 for most people – delaying it can help you plan for retirement. It is true that over one’s lifetime, the amount of money ultimately received will be about the same. However, postponing distribution will yield a bigger check once it starts. Delaying your benefit will preclude you from spending it early on, although other retirement accounts or resources will be needed for expenses. Drawing on tax-advantaged accounts, such as a Roth IRA, can help you sustain a protracted slowdown while keeping your Social Security safe until you’re ready.
Generate More Income
If you’re worried about losing money, consider making more of it. Be it using your finely honed skills to bring in extra cash or creating some side hustle, you can continue to produce income beyond retirement to cover prospective losses during economically uncertain times. Even if retirement is still some years away, producing secondary income streams, perhaps through an investment strategy, can protect against market volatility.
Develop a Retirement Budget
To retire confidently during market uncertainty, craft a retirement budget that determines what your essential expenses will likely be and identifies income sources. To maintain your current lifestyle during retirement, you’ll need to supplant about 75% of your gross preretirement income at the start of retirement. If markets are down and more adjustments are needed, look again at nonessential spending.
Figuring out how to budget for daily expenses, getting started investing so your money grows over time, and making sure you’ll have the money to retire is tough. However, while you can’t control market volatility, you can be proactive about what you can control when it comes to your retirement. Following these tips can help you have the retirement desired.