Safeguarding Your Retirement

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Safeguarding Your Retirement

As we get closer to the end of 2023, it’s crucial to look back on the past year, learn from its challenges, and employ strategies to make 2024 your most prosperous year yet.

With 2024 approaching, those nearing retirement should be aware of potential risks that might threaten their future financial stability. While forecasting the future is a challenging endeavor, there are proactive measures investors can adopt to guard against unanticipated market shifts or events that might jeopardize retirement savings. Let’s take a look at CKS Summit Group’s recommended strategies to shield your retirement in 2024.

Broaden Your Investment Horizon 

A cornerstone of sound investing is diversification, which entails allocating your resources across various asset classes to minimize your portfolio’s overall risk. This could encompass equities, bonds, and real estate, among other investment vehicles. By broadening your investment horizon through diversification, you tap into the potential of different markets, each with its unique growth trajectory and risk profile. This approach not only bolsters your defense against market uncertainties but also capitalizes on growth opportunities in diverse sectors. By doing so, you ensure that your retirement nest egg isn’t overly reliant on a single asset category or industry, positioning yourself for a more stable and robust financial future.

Have an Emergency Fund 

Regardless of life’s phase, having an emergency fund is paramount, more so during retirement. Such a fund can be your lifeline during unforeseen financial disturbances, be it an abrupt medical emergency or urgent home maintenance. Moreover, in retirement, with potentially limited income streams and higher susceptibility to health-related issues, an emergency fund becomes even more critical. It ensures that retirees don’t have to dip into their primary retirement savings or assets during unplanned events, preserving the longevity of those funds. Begin to save an equivalent of three to six months of living expenses in a readily available account, like a high-yield savings account. Regularly reviewing and adjusting this amount based on changing needs can further ensure its adequacy throughout the retirement years.

Evaluate Long-Term Care Coverage 

For 2024, the cost of a long-term care insurance policy might range from $79 to a whopping $533 monthly. However, these rates are influenced by various factors like age, health status, gender, and the policy’s coverage extent. It’s noteworthy that the absence of insurance can lead to astronomical long-term care expenses. Considering the typical expenses for 2023, here are the costs associated with long-term care:

  • Home health aide: $5,148/month
  • Adult day care: $1,690/month
  • Assisted living facility: $4,500/month
  • Semi-private nursing home room: $7,908/month
  • Private nursing home room: $9,034/month 

Interestingly, while seniors aged 65 and above have a 70% likelihood of requiring long-term care services, a mere 11% have long-term care insurance. This leaves many grappling with staggering costs when care becomes essential. Long-term care insurance can be instrumental in safeguarding your retirement assets against exorbitant future care expenses. Though it might not suit everyone, it can be an invaluable resource for many.

Consult a Financial Advisor 

Engaging with a seasoned financial consultant is akin to charting a navigational course for your retirement journey. These professionals possess the guidance and insight to design a retirement plan that seamlessly aligns with your individual goals, current financial position, and your comfort level with market risks. Their broad understanding of the financial landscape allows them to detect potential pitfalls or opportunities in your investment strategy that might otherwise go unnoticed.

For instance, financial advisors might introduce you to a variety of investment tools, from equities and bonds to alternative assets, ensuring you have a diversified portfolio that can weather market fluctuations. Additionally, they can guide you on effective retirement expense management, helping you strike a balance between maintaining your desired lifestyle and making certain your savings last through your golden years.

CKS Summit Group: Your 2024 Financial Ally 

It’s imperative to periodically reassess your financial strategy and investment choices, especially with shifting personal objectives and volatile financial landscapes.

The silver lining? You’re not navigating this journey solo. CKS Summit Group stands ready to evaluate your financial assets, helping you pinpoint the optimal retirement portfolio. Because a proactive financial health check grants you the luxury of time for any crucial recalibrations.

Let CKS Summit Group be the guiding hand for your retirement aspirations.
Ready to map out your strategy? Schedule your complimentary strategy session with us today.