Financial Checklist for Your Sixties

By Gary Dunco, CFA, CFP®, CRPC®, APMA®, Private Wealth Advisor, Ameriprise Financial

Saukville, Wis. - Outside of your 20s, your 60s may be the other decade in which you face the most significant lifestyle and financial changes.

It’s normal to experience mixed emotions about money and retirement. You’ve either reached the traditional retirement age, or are almost there, and may be excited and hopeful about what’s to come. At the same time, you might be anxious about your ability to fund the retirement of your dreams.

The key is to keep a close eye on your finances, and adjust your plans as needed. Here are five tips for people nearing this important milestone:

1. Evaluate your expenses and budget. It might seem simple, but do you have a solid grasp on your expenses? During your working years, it can be easy to think you’ll make up for overspending the next time you receive a paycheck. You’re unlikely to have that luxury in retirement. Know what it costs to cover the essentials, and examine how much you’re spending on discretionary items. Also, consider where your expenses might fluctuate in the coming years – areas such as healthcare, recreation and travel.

2. Replace your paycheck. One of the smartest, and most reassuring, things you can do in retirement is to replace a regular paycheck. You’ll have a predictable amount of income every month, similar to during your working years. The process can be complicated, especially if you want to structure withdrawals in the most strategic and efficient way. A financial advisor and tax professional can help. It’s a good idea to create a written plan (if you haven’t done so already) so you have a roadmap to follow in the years ahead.

3. Review your portfolio. If you feel nervous about your invested assets, take a close look at your portfolio and how your investments have performed since the recession. It’s beneficial to know exactly where you stand. Evaluate how your assets are allocated to different investments that offer potential for growth, income, or preservation. If you need to rebalance your portfolio or move funds to less volatile products, do so. It’s essential that you take a balanced approach to managing your investments, especially as you approach and begin your retirement years.

4. Be rational. It might be difficult to avoid the constant stream of economic news, but don’t let market swings and political back-and-forth cloud your judgment. Stay away from quick fixes or impulsive decisions such as purchasing excessively risky assets, selling your home, or withdrawing all your money from liquid investments. Work to stabilize your personal financial situation, and consult with friends or family who are also preparing for retirement. Having a support network can help ground your emotions.

5. Prepare for the unexpected. If you don’t already have a will, put it at the top of your to-do list. If you have one in place, make sure it still reflects your current wishes. In addition, check to see that all your beneficiary information is up to date on specific accounts, such as IRAs. Be sure to discuss your plans with your spouse or significant other, and your children. They should know how to find your financial documents if you die, or are unable to make financial decisions for yourself. These can be difficult conversations for everyone involved; they can also tremendously reduce the stress that you and your family may face later on.

It’s a good idea to stay in close contact with your financial advisor during these crucial years. If you haven’t sought professional advice in the past, it’s not too late to start. A financial advisor can help you manage your immediate expenses with a budget and provide guidance on your long-term goals.

Gary Dunco, CFA, CFP®, CRPC®, APMA®, a Saukville resident, is a Financial Advisor and Private Wealth Advisor with Ameriprise Financial Services, Inc. in Brookfield, Wis. He specializes in fee-based financial planning and asset management strategies and has been in practice for 32 years. To contact him, please call (262) 785-1010, visit his office at 16650 W. Bluemound Road, Suite 800, or go to http://www.ameripriseadvisors.com/gary.b.dunco.

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Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser.

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