In the financial red zone, your last few years before retirement are crucial to get it right. Just like in football, during that final stretch before the end zone you want to make sure there are no major mistakes are errors. On today’s episode of the podcast, Alan and Troy coach you through this area in your financial life.
You might face a lot of questions in this financial red zone. How are you going to get income out of your accounts? How will you be taxed? And what can you do to strategize accordingly? When you’re say, 37 years old, you have a long time before retirement and can ride the market longer. In contrast, if you’re within ten years of retirement, you can’t afford to make as many mistakes with your investments because you don’t have the time to recover your assets.
Maybe you’re exposed to too much risk. Or maybe you’re playing catch-up in order to make up for lost time. These mistakes can really cost you. You still need to have protection in place in case the market turns on you. Another mistake is not knowing your monthly spending. Look at the numbers and understand your own expenses and spending. Most importantly, you have to have a financial plan to guide you.
At a certain age, you get a clearer idea of when you really will retire and what you want your retirement life to look like. This can provide an outlook of what you need to do during this financial red zone time. Or, you might be pleasantly surprised to find out how close you are to your goals. Meet with an advisor today to find out how best to proceed with your financial decisions.
Listen to the entire episode or skip ahead using the timestamps below.
1:21 – What is the financial red zone?
3:29 – Why do you need to pay more attention in the last 10 years before retirement?
6:33 – What are some common mistakes people make?
11:42 – What can make retirement planning easier?