Investing For Retirement Does Not Have To Be Boring
Some people count the days until retirement and then retire as soon as they are eligible, relishing their withdrawal from the rat race and enjoying the sweet days of idleness. You might even know someone who kept his promise to do virtually nothing after he retired. Idleness is not for everyone, though. You are not alone if you dread the thought of retiring, even though it would be feasible given your age and financial situation. Retirement phobia usually stems from a fear of losing the thing that gives your life meaning. In certain lines of work, people’s professions are closely tied to their identities. Who are you if you aren’t a nurse, a teacher, an economist, or whatever the professional title is that people have known you by since you were in your 30s or even younger? Of course, people who think that work is for chumps might have another reason for fearing retirement. Specifically, once you retire, investment income is your daily bread; that means that, if the gamification of investments was your identity, the party is over. A Tampa estate planning attorney can help you make a financial plan that leaves you some money to place in high risk investments for fun, if this is what suits you.
Making Room for Risky Investments in Your Retirement Plan
Diversifying your investments is still a sound strategy, even if you are retired. By the time you retire, you should have at least enough money invested in low-risk investments to sustain you for your first three years of retirement. Your higher-risk investments should be the ones from which you don’t plan to withdraw money until later; ideally, you should subdivide these into medium-risk investments, which you might tap into within seven years, and high-risk investments, which you will not touch until seven years into your retirement. This way, if your risky investments start to depreciate, you have plenty of time to move them into lower-risk accounts and let them recover some of their value before you need to rely on them for income.
Risky Investments Aren’t for Everyone
If you enjoy the game of investing, you don’t have to stop when you retire. It is fine to place some of your money in high-risk investments that may or may not yield returns at some future date that you may or may not live to see. You still need some guaranteed sources of income, though. Social Security alone will not sustain you if you gamble away your retirement savings on high-risk investments. You can balance out your risky investments with annuities and hybrid life insurance policies. Everyone, overgrown venture capital bros included, needs long-term care insurance.
Contact David Toback With Questions About Retirement Plans That Fit Your Personality
A Central Florida estate planning lawyer can help you make an estate plan that has room for adventuresome investing as well as safer options. Contact David Toback in Tampa, Florida to set up a consultation.