Help Mitigate Retirement Risk in 2023

By in
Help Mitigate Retirement Risk in 2023

Welcome to 2023! As we kick off a brand new year, now is the perfect time to reflect on the past 365 days and apply those harsh lessons to the year ahead. Here’s how to protect yourself from the hardships of 2022 to help make ’23 the most fruitful year yet.

As we look ahead to 2023, it’s important for retirement savers to consider the potential risks that may impact their financial security in the future. While no one can predict the future with certainty, there are steps that you can take to mitigate the risk of your retirement savings being affected by unexpected events or changes in the market.

Here are some strategies for mitigating retirement risk in 2023 with CKS Summit Group:

Diversify Your Portfolio

One of the key principles of investing is diversification, which means spreading your money across a variety of different asset classes in order to reduce the overall risk of your portfolio. This can include stocks, bonds, real estate, and other types of investments. By diversifying, you can protect your retirement savings from being too heavily exposed to any one particular asset class or sector.

Have an Emergency Fund

Having an emergency fund is important for any stage of life, but it’s especially crucial in retirement. An emergency fund can help you weather financial storms and unexpected expenses, such as a sudden illness or home repair. Aim to have at least three to six months’ worth of living expenses saved in an easily accessible account, such as a high-yield savings account.

Consider Long-Term Care Insurance

In 2023, you can expect to pay anywhere from $79 to $533 per month for a long-term care insurance policy. These premiums, however, vary greatly based on age, gender, health, and the coverage amount of the policy.

Without insurance, long-term care costs can be exceedingly high. In 2023, you can expect to pay the following monthly costs:

  • $5,148 for a home health aide
  • $1,690 for adult day care
  • $4,500 for assisted living
  • $7,908 for a semi-private room in a nursing home
  • $9,034 for a private room in a nursing home

Individuals 65 or older have a 70 percent chance of needing long-term care services in the future, but only 11 percent purchase long-term care insurance. The rest are left scrambling to cover costs when the time comes.

Long-term care insurance can help protect your retirement savings if you need extended care in the future, such as in-home care or a stay in a nursing home. While it’s not right for everyone, long-term care insurance can be a valuable tool for mitigating the risk of unexpected and potentially costly long-term care expenses.

Work With a Financial Advisor

Working with an experienced financial advisor can help you create a retirement plan that takes into account your specific goals, risk tolerance, and financial situation. A financial advisor can help you identify potential risks and develop strategies to mitigate them, such as by recommending a diversified investment portfolio or suggesting ways to reduce expenses in retirement.

By following these strategies, you can help protect your retirement savings and ensure that you have the financial security you need in the years ahead.

CKS Summit Group – Here for You in 2023

Without a steady paycheck from an employer, you’ll need to make the assets you’ve saved — along with Social Security and any pensions you may have — last throughout your retirement years.

As your circumstances, goals, and the financial markets change, it’s important to review your strategy and investment portfolio regularly to help ensure you remain on track to meet your goals.

The good news is that you are not alone. At CKS Summit Group, we can help you analyze your assets and find the right retirement portfolio to match – because examining your financial wellness in advance gives you more time to make any necessary adjustments.

Let’s set up your complimentary strategy session! Contact us here today and let CKS work for you and your retirement goals.