Retirement Wealth Management Tips

If you are a high net worth individual over the age of 55 and are preparing to retire, it is important that you take steps to protect your wealth. Retirement can be a challenging time, both financially and emotionally. You need to make sure that you have a strategic retirement plan in place, and that you are taking steps to preserve your estate for your beneficiaries.

In this guide, we will be covering some essential tips for people who are preparing to retire and want to optimize their portfolios beforehand. With some practical steps, you can prepare your estate for your post-career life and for when the time comes for your future beneficiaries to inherit your assets.

Reallocate Assets Towards Safer Investments

As you approach retirement, examine your portfolio and make sure that your assets are allocated in a way that suits your goals and risk tolerance. For many people, this will mean reallocating some of their assets towards safer investments, such as bonds or cash equivalents. This will help to minimize the potential for losses in retirement, while still allowing you to maintain a degree of growth potential.

Estimate How Much Cash You Will Need on Hand Each Year

It is also important to have a realistic estimate of how much cash you will need on hand each year during retirement. This will help you to plan for your expenses and make sure that you do not outlive your retirement savings. You can also work with your wealth manager to create a cash allotment strategy. 

In general, here are some expenses that you will likely need to account for items such as: 

  • Monthly utility bills
  • Mortgages for one or multiple homes
  • Transportation costs
  • Monthly essentials like groceries
  • Services like lawn care or pool maintenance
  • Leisure activities: Vacations, country club dues, etc.
  • Holiday gifts
  • Personal spending money
  • Healthcare: Doctor appointments, medications, etc.

Create a Plan to Pay Off Any Outstanding Debt

If you have any outstanding debt, it is important to create a plan to pay it off before retirement. This will help to mitigate the financial impact of your monthly expenses and eliminate any potential financial threats to your estate.

One option is to consider using a portion of your retirement savings to pay off your debt. Another option is to work with a financial advisor to create a retirement plan that includes a debt payoff strategy. If you have an extensive portfolio where you can afford to sell a portion of your current assets to clear off your debt, you may be able to take this approach instead.

Update Your Will and Beneficiaries

Once you have established your retirement plan, it is important to update your will and beneficiaries. This will ensure that your estate and assets are distributed as you intended and that your loved ones remain supported after you pass away. If you do not have a will already, now is the best time to create one.

An estate attorney can help you create a will that is legally sound. Additionally, you can also consult a wealth manager to ensure your assets are accurately valued for when the time comes to pass them on to your beneficiaries.

Consider Selling Assets that Are Not Currently Generating Wealth

If you have assets that are not currently generating wealth, such as unused real estate or a piece of valuable fine art, you may want to consider selling them before retirement. This will help to free up some cash that you can use during retirement.

Additionally, selling these assets can also help to simplify your estate and make it easier for your beneficiaries to manage after you pass away. If you are not sure whether or not to sell an asset, you can always consult with a financial advisor to get their professional opinion.

Ask your wealth manager for their opinion on assets that you are considering selling. Their guidance can help you identify the most promising opportunities to create some additional revenue for your estate as you plan to retire.

If You Want to Establish Any Trusts, Start Now

If you are considering establishing any trusts, it is important to start the process as soon as possible. This will ensure that your trusts are properly established and funded before retirement.

There are many different types of trusts that you can establish, each with its own unique benefits. A financial professional can help you decide the types of trusts that best suit your needs as well as the beneficiaries you are creating them for.

Work with a Wealth Management Team to Optimize Your Retirement Strategy

As you prepare for retirement, working with a wealth management team can help ensure that your portfolio is optimized for your post-career life. This team can help you review your current portfolio, make any necessary adjustments, and implement a plan to generate income during retirement.

If you are considering retirement and are seeking wealth management advice, be sure to consider the tips above. By taking the time to plan proactively, you can retire with confidence and ensure that your estate is prepared for your beneficiaries.

At Hutchinson Family Offices, our team of expert wealth managers is dedicated to providing a collaborative boutique service for our clients. If you are preparing for retirement and want to do so as confidently and securely as possible, contact us today to learn more about how we can help you. 


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