Get the app

 

4 Way to Protect Your Nest Egg in Retirement

July 27, 2021

 

 

Making it to retirement is a big accomplishment, but choosing to retire is only the beginning. Retirement is a long journey, one that can last for three decades or more. Now that you have made the transition, you need to make sure your money lasts as long as you do.

So how do you protect your nest egg and make it last? How can you safeguard the funds you spent a lifetime accumulating? Here are some practical ways to keep your nest egg safe while you enjoy a happy and carefree retirement.

Plan for the Unexpected

One thing is certain: at some point, the unexpected will happen. You may not be able to see it coming, but you can prepare for those unexpected events. Whether the unexpected comes in the form of a health crisis, a major home repair or a big personal blow, being prepared will make it easier to weather the storm.

Having a solid emergency fund is an absolute must in retirement, so take a look at your cash cushion and make adjustments as needed. You can also use insurance, annuities, and other financial strategies to lower your risk and get ready for the unexpected, but the sooner you get started, the better off you will be.

Insure Against Contingencies

Now that you are retired, your insurance needs will likely change. Some risks will be minimized or go away entirely, while other new ones will emerge.

You may want to consider an umbrella policy to protect your nest eggs from unexpected events and lawsuits. You may need to revisit your health insurance coverage as Medicare eligibility comes into focus. No matter what your needs, sitting down with an insurance professional at this stage of your life makes sense.

Tweak Your Budget

Hopefully, you already have a household budget in place. If not, now is the time to create one. If you do have a budget, you may need to tweak it once you are fully retired.

Some expenses, like the cost of commuting and the expense of business attire, will go away, while others will crop up to take their place. Once you know what you are spending money on and where your funds are going, you can look for ways to economize, so your retirement income can go further.

Adjust Your Lifestyle When Conditions Change

You cannot predict what the stock market will do, but having some exposure to stocks is still one of the best ways to stay ahead of inflation. Keeping all your money in cash can be just as risky, and you will need to strike the proper balance.

It may be impossible to tell where things are going, but you have more control than you realize. When things are looking bad, you can adjust your lifestyle temporarily, preserving your assets for the inevitable turnaround. Simply postponing a big vacation or putting off a big purchase could make a huge difference and extend the life of the nest egg you have worked so hard to build.

Your retirement years should be fun, not stressful. You should not be staying up at night worrying about your nest egg; you should be spending your days enjoying it. Taking a few practical steps now, in the early days of your retirement, can make everything that follows easier.

Continued Learning

For more personal finance education and tips, check out the rest of our blog posts at  https://www.sunmarkbank.com/blog.