The First Five Years of Retirement

Financial PlanningRetirement
The First Five Years of Retirement

Ah, retirement. After working so hard for so long, you’ve finally exchanged your “9-to-5” for more travel, more time with family, and more opportunities to pursue your other passions. You’ve spent decades planning and saving for this milestone. But don’t throw out your budget just yet. Do you know why the first five years following retirement are so critical?

This is because that first half-a-decade provides you with a window into what the future will most likely look like, and this period is an indicator of how you may need to adjust your saving or spending to be well-prepared for the years to come. That nest egg that you’ve been growing for so long needs to last, so it’s best to analyze your money management early on and make the necessary adjustments.

The amount you saved was probably based on careful estimations of what you expected to spend post-retirement, so it’s important to do a check-in! Have your estimations been accurate? Are you in good financial shape for the next five years?

Depending on your answers to those questions, it may be time to adjust your budget to reflect real numbers and not estimations.

It is also a great time to evaluate your investment strategy and reconsider the allocation of your assets. A financial advisor can help you make some determinations about your investments as well as your legacy planning, which involves taking a look at your powers of attorney and distribution of wealth and resources. Your current situation will impact both your estate plan and insurance strategy.

The first five years of retirement is also the prime time to think critically about health insurance. Should you claim Medicare at the age of 65 if you haven’t already? When is the best time to evaluate your potential needs for later in life? A financial advisor can help you navigate these questions and insurance options to find a plan that works best for you.

As you continue enjoying your retirement, Ambassador Advisors can help guide you through questions you may have or issues that may arise. Don’t let anxiety about the future taint the retirement you worked hard for. Take stock of your budget, update your investments, insurance, and estate plan, and meet with your financial advisor to ensure your peace of mind for years to come.


Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purposes of avoiding penalties that may be imposed by law. Each tax payer should seek tax, legal or accounting advice from a tax professional based on his/her individual circumstances.
This material is for informational purposes only. Neither APFS nor its Representatives provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions. Information has been obtained from sources believed to be reliable and are subject to change without notification. The information presented is provided for informational purposes only and not to be construed as a recommendation or solicitation. Investors must make their own determination as to the appropriateness of an investment or strategy based on their specific investment objectives, financial status and risk tolerance. Past performance is not an indication of future results. Investments involve risk and the possible loss of principal.

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