Have you ever had to make a “course correction” in your life? Maybe you were sailing and realized the waves had taken you off course and if you didn’t make a change, you could end up on the rocks. The same can be true in retirement planning. There will be times in your retirement journey that you’ll feel like you need to make a “course correction”. When that happens, what should you do and when is the time to do it?
The first thing to consider is what kind of “course” or plan are you on? It is impossible to correct your course if you aren’t on one to begin with! By working with a financial advisor, you can create a retirement plan that will cover understanding how you will create a retirement paycheck and a retirement budget. Once you have a solid retirement plan in place, you and your advisor will have a better understanding of when or if a course correction is necessary. You’ll also have a more precise idea of what to correct, rather than just making sweeping changes.
After you know your “course”, it is vital to consider where you are on that course if you believe a correction is needed. To go back to the sailing analogy, if you are early in your journey, small changes to the course can make a big impact on the final destination. However, if you are much further along on your course, a more drastic change may be required to realign with your plan. It is a good idea to touch base with your financial advisor regularly along the way to see where you are in your retirement journey. Sometimes the best advice is to simply “stay the course” and do nothing. The 24-hour news cycle has a way of creating alarm for people on their retirement planning journey that sometimes is not necessary. Always work with our advisor before considering major course corrections.
Staying on your retirement course doesn’t have to feel like you are navigating the high seas in the middle of a storm! When you have a plan and a navigator (financial advisor) with you for the journey, you can have a much better idea of when “course corrections” are necessary. Give us a call today to start plotting your retirement course!