When the daily news is filled with discussions about inflation, interest rates, market volatility and endless other angst-producing events, how you react could make a difference in your financial outcomes. These tips may help you sort through the noise and create an action plan that fits your situation.
The first step is to evaluate. Do you have a current retirement income plan that you have been following? If your plan is documented, it is likely that it includes how much cash flow you need to meet your day-to-day expenses as well as for discretionary spending. Pull out your plan and take a look to determine where adjustments might be applied.
If you do not have a plan or it has not been updated to reflect your current circumstances, document your assets, income sources, expenses and debt. Gathering all the information in one place helps clearly define your total money picture. In the process, you may uncover expenditures that can be reduced or eliminated. A few adjustments may be enough to reduce the pressure on your income flow.
If your plan is addressing your current needs, it can be reassuring to confirm that your plan is working as you had expected.
If your income needs no longer match your income plan, depending on your circumstances, there are actions you may want to consider to get your plan on track. These may include:
Your adviser can help you explore how alternatives such as these may fit into your strategy. Indeed, both your tax adviser and financial adviser can be helpful partners in assessing your situation.
Regular reviews of your income flow and income strategy are helpful to identify if changes are needed in your strategy or to confirm that things are working as planned.
These are just a few examples of changes that could help your retirement income deliver on your strategy. Contact your financial adviser and legal and tax advisers to review your specific situation and help address your changing needs.
Variable annuities are long-term investments suitable for retirement funding and are subject to market fluctuations and investment risk.
This article was written by/for Wells Fargo Advisors and provided courtesy of Jamie Seim, CFP, Senior Vice President – Investment Officer in Ponte Vedra Beach at 904-273-7917.
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