Retirement planning can feel daunting for those about to hang up the work clothes.  Understanding how much money to save, what financial investments to hold and what financial advisor to work with are all big decisions.  Independent fiduciary financial advisor Matt Dicken of Strategic Wealth Designers  joined WDRB in the Morning to provide insight into the best ways to get planning for retirement in a successful manner. He says it is critical to understand what your investments are doing now versus what they should be doing for a peaceful retirement.

              “Studies show that only 1 in 3 households are properly prepared for retirement. One of the first keys is to find out exactly what your fees and expenses are in your portfolios,” Dicken says. “Excessive fees will cost you 10’s of thousands if not 100’s of thousands of dollars over one’s lifetime. If you are paying fees that are too high, it can have a dramatic impact on your retirement.”

              Retirement planning should begin as soon as you have money to invest. Dicken says the first job in high school or at least once you have come out of college, it is time to start putting money back.

“At the latest by the time you turn 30, you should have a well-documented and prepared retirement plan,” Dicken says.

When you get older your retirement portfolio should transition into an investment portfolio that mirrors your lifestyle.  Younger investors are apt to take greater risk with their financial investments as they have time on their side but as you age and enter retirement your retirement portfolio should be shifted to hold much safer investments.

“One of the number mistakes we see retirees and pre-retirees making is that they are carrying far too much risk in their portfolios, about 10 years out (from retirement) you want to start moving to safer investments,” Dicken says. “It all comes back to having a well-defined retirement plan, understanding how much risk you are comfortable with and how much risk you may need to take in order to have a secure and successful retirement.”

              To succeed in retirement, your financial plan should account for your level of risk, mitigating fees in your portfolio and have a tax planning strategy not just for year one but throughout retirement. To learn more about this financial topic and all market updates visit https://WDRB.com/MoneyMatters

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