5 Considerations to Help You Retire Wealthy
Planning for retirement can be stressful, but breaking it down to these five elements can help.


If you want your nest egg to be robust when you’re ready to retire, you have to take care of it now. That means careful investing and saving. You can’t just go out there and wing it.
Here are five things to consider as you build and manage your wealth.
1. Reduce your risk.
If you lose 10% of your savings when you’re young — say, $1,000 of your $10,000 — it’s a blow. If you lose 10% of the $1 million you have saved for retirement at 65, it will feel like a knockout punch. Know your time horizon and how much risk you can tolerate. Your portfolio will thank you.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
2. Build a solid foundation.
Make sure your retirement’s financial needs are covered and locked in years before you actually call it quits. Set a practical budget and work with your financial professional to draw up a plan that includes a structured way of drawing income from certain assets, implementing cash flow on others, dealing with inflation and taxes, and taking asset protection into consideration in case you or your spouse need long-term care.
3. Hedge risk through diversification.
There's an old joke that underscores the risks of investing: “How do you make $1 million in the market? Start with $2 million.” It’s OK to take some risk, but hedge the downside so you don’t lose everything. Don’t go all in on any one investment or asset class; keep a diversified portfolio. Talk to your financial professional about risk-management options.
4. Have realistic expectations.
You don’t retire wealthy by making huge returns — you do so by saving your money and avoiding costly mistakes. Slowly and strategically shift your focus from accumulation to preservation as you draw closer to retirement. Conservative investments aren’t as exciting as hot stocks, and you can’t brag about them at the club, but when your portfolio is secure, it can help you have more confidence in your financial future. If you need an occasional thrill, you could always pop into the local convenience store and buy a lottery ticket — but only occasionally.
5. Leverage those who know more.
If you wouldn’t set your own broken arm or defend yourself in court, don’t imagine you’re an expert in retirement planning. Consult with people who have experience in taxes, estate planning and other areas of financial advice. They can help you, and hopefully, you will make fewer mistakes and have a much better chance of hanging on to your wealth.
To end your working years with the kind of wealth that will give you a comfortable, confident retirement, you’ll need a strategy. You’ll need discipline. And you’ll need help.
A trusted financial professional can help keep you on track as you set your goals, build your fortune and then, at long last, enjoy it.
Kim Franke-Folstad contributed to this article.
Investment advisory services offered through AE Wealth Management, LLC (AEWM). AEWM and Max Wealth & Insurance Solutions are not affiliated entities. Investing involves risk including the potential loss of principal.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Max Hechtman is an Investment Adviser Representative and insurance professional. He is partner and president of California-based Max Wealth & Insurance Solutions (CA License # 0H29034). His goal is to help his clients work toward a safe and conservative retirement using a variety financial vehicles. Hechtman has been advising clients for 14 years.
-
Aging: The Overlooked Risk Factor
Sponsored Elder care is a personal and financial vulnerability many people fail to plan for.
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?
AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Eight Tips From a Financial Caddie: How to Keep Your Retirement on the Fairway
Think of your financial adviser as a golf caddie — giving you the advice you need to nail the retirement course, avoiding financial bunkers and bogeys.
-
Just Sold Your Business? Avoid These Five Hasty Moves
If you've exited your business, financial advice is likely to be flooding in from all quarters. But wait until the dust settles before making any big moves.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get It
The Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook
Consider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a Recession
Recessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income Planning
Once you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.