The PRESERVATION PHASE of saving money for retirement is the 2nd and very important phase to your retirement plan.
In this phase, you will be working hard to protect your retirement funds from losses. This is very critical as you would not have much time to make up any losses in your account since you are so close to retirement age. Once you are about 5-7 years away from retirement, you will need to really look at your retirement plan so that you can insure that you have little to no losses in your accounts as you will not have the proper time to make up those losses in most cases.
The normal age range for this phase is usually between the ages of 52-65. I know that is a larger window than the 5-7 years that was mentioned above but remember that you will be retiring at different ages. We want to make sure that you really look at your time horizon of when you want to retire and work your plan to fit the 5-7 year mark.
Goals of the Preservation Phase are:
Tips on how to reach your goals in the Preservation Phase are:
Remember that this phase will either prepare you for the next phase of saving money for retirement or cause you to have to continue working past your planned age of retirement. The third and last phase of saving money for retirement is the Distribution Phase. This is the fun part of the planning process. This is where you get to FINALLY spend the money you have been saving for so long.
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