It is natural to think of retirement as a time of shutting down and taking it easy. From a money management standpoint though, retirement is when the real work begins.
Saving for retirement is tough, but perhaps the biggest financial challenge comes once you stop working. After all, those years leading up to retirement leave you a certain margin for error -- if your retirement savings start falling behind, you have options such as increasing your retirement savings rates over the next few years or even working a while longer than originally planned. Once you walk away from the workplace though, your savings are somewhat locked in -- now you have to make them last.
To help stretch your savings over the course of your retirement and take care of other financial responsibilities in the later part of your life, here are five things you should plan on attending to once you retire.
1. Fine-tune your asset allocation
In terms of risk management, retirement is a real watershed event. It is the point at which you typically go from adding money to a retirement plan to taking money out. That is important, because it has a substantial impact on your liquidity needs and your portfolio's ability to withstand market volatility.So, once you start drawing from your retirement plan, you should consider shifting to a more conservative asset mix so the portfolio is more stable and liquid. However, you still have a long enough time horizon that you should not totally abandon growth investments, especially given how low bond yields and savings account rates are these days.