| Your golden years will resemble copper years if you | | | | you keep some of your retirement savings illiquid. |
| fail to plan for retirement. Unfortunately, many | | | | This forces financially undisciplined retirees to |
| retirees face a situation where they do not have | | | | conserve part of their savings. |
| adequate retirement savings to sustain their | | | | Use high-yield cash options |
| pre-retirement lifestyle. There is no point in wishing | | | | While it is important to invest after retirement, you |
| that you saved more for retirement. It is incumbent | | | | must save a portion of your fund in cash or cash |
| on you to maximize your retirement savings in the | | | | equivalents. This is because unforeseen expenses can |
| following ways: | | | | lead to an immediate demand for cash. However, you |
| 1) De-emphasize guaranteed lifetime income | | | | need to ensure that your cash options maintain the |
| 2) Diversify your retirement savings portfolio | | | | real value of your savings. Cash options (that are on |
| 3) Use high-yield cash options | | | | par with headline inflation) help you to maximize the |
| 4) Limit your annual withdrawal rate to 4% and under | | | | real value of your savings. |
| 5) Continue saving after retirement | | | | Limit your annual withdrawal rate to 4% and under |
| De-emphasize guaranteed lifetime income | | | | Maximizing your savings has much to do with cutting |
| Guaranteed lifetime income is a fine idea, but it has | | | | spending leaks. Retirees must pay attention to the |
| its place. It works by taking money that could have | | | | withdrawal rate, particularly in the first few years of |
| been your retirement savings and giving you the | | | | retirement. An unsustainable withdrawal rate puts you |
| returns as guaranteed income! You want to avoid | | | | at risk of outliving your life savings. |
| depleting your savings just for the sake of | | | | Continue to save after retirement |
| "guaranteed lifetime income". This will actually put you | | | | If you are surviving on a fixed retirement income, |
| in a better position once you save or invest your | | | | saving in the initial stages is particularly important. |
| funds securely. Limiting your sacrifice of savings for | | | | Since the cost of living will rise in the future, you |
| income will not only help you to maximize your | | | | should help yourself by saving what little you can. |
| savings but empower you financially as well. | | | | Your fixed income will only lose value as the years |
| Diversify your retirement portfolio | | | | proceed. In addition, your reliance on your retirement |
| It is important to continue to invest after you retire. | | | | fund to sustain your standard of living will typically |
| Maintaining a diversified savings portfolio helps you to | | | | increase into retirement. |
| access the accumulation benefits of investing without | | | | Maximizing your savings is not an end; it is merely a |
| adopting unnecessary risks. Apart from augmenting | | | | means to an end. The importance of it resides in |
| your retirement fund, diversification would also help | | | | allowing you to mitigate the financial risks associated |
| you to combat inflation risk and longevity risk. | | | | with retirement. |
| Another benefit of investing after retirement is that | | | | |