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Three Things to Know about Planning for Retirement

Three Things to Know about Planning for Retirement

August 15, 2022

At Zephyrus Financial Services, it’s exciting to help people in or near retirement plan for their financial future, and ultimately, their financial freedom. Over the years, we’ve had plenty of conversations with people and learned there’s a lot of misinformation out there. Let’s dive into a few things we wish everyone knew about planning for retirement. 


When DIYers Should Ask for Help

Technology has made it easier for people to DIY when it comes to investing. If this is the path you choose, make sure you find your risk tolerance before getting too heavily invested. Your risk tolerance determines how well you can stomach a decline in the value of your investments. You can use an online tool to gauge your comfortability with risk.


If you become overwhelmed by your investments, you should meet with a financial advisor and pass your worries and concerns on to them. No matter your financial situation, everyone should start meeting with a financial advisor around the time they start looking for a house, get married or have kids.


Don’t Sit on Too Much Cash

We’re experiencing uncertainty amid rising inflation and interest rates. When there's uncertainty or market volatility, people want to cash out their investment and sit on the cash. Inflation is eroding people’s savings accounts. The average savings account interest rate is 0.1%, which isn’t keeping pace with the 9% rate of inflation. When people cash out their investments, they miss out on their potential upside when the markets inevitably go up. Sitting on cash may feel secure, but it’s actually disrupting your long-term financial plan.


Remember: It’s a Marathon, Not a Sprint

Although we’ve seen market volatility this year, remember to keep your time horizon in mind. Do you need this money in the next five years? If not, consider riding it out. If you do need that money in the next five years, work with a financial professional to assess your risk tolerance and risk allocation in your portfolio. You may need to consider adjusting your risk allocation to more conservative positions.


If you’re interested in discussing your financial future or want to start creating your customized financial roadmap, set up a meeting today, and don’t forget to follow us on Facebook and LinkedIn.