By Daniel Korleski, MBA
Did the chaos of 2020 cause you to fall behind on retirement savings? Are you finally in a space where you can begin looking ahead instead of trying to keep up? Have you set some goals to plan for the future but don’t know where to start? If you answered yes to any of these questions, we recommend taking time to review your retirement plan and make sure it’s on track.
After the year we’ve just experienced, we’ve learned that it’s more important than ever to plan for future security. When it comes to retirement planning, the biggest risk is perhaps having no plan at all. A good retirement plan can help you avoid common pitfalls and feel more confident in your future.
Review Your Investments
Although there are many components to retirement planning, the right investment allocation could be the difference between an enjoyable retirement and a stressful one. Your investment mix should be invested according to your age, the number of years in retirement, and your goals and objectives for your specific personal situation. As life circumstances shift, you’ll want to review and make adjustments accordingly.
For example, individuals more than a decade away from retirement may want to invest in more stocks than bonds, which could help them catch up on retirement savings after a year of focusing on other financial needs. Your trusted financial professional can help you evaluate the best approach based on your unique circumstances. Investment reviews can go a long way in keeping your plan on track.
Examine Your Budget
Another important area to review is your budget. If your income changed in 2020 or you were hit with unexpected emergency expenses, budgeting can reveal where to cut back and how to allocate more money toward savings. If you expect a raise in 2021, consider upping your contributions to a retirement account instead of increasing your expenses.
And if budgeting feels overwhelming, we encourage you to find just one expense in your budget you know you can cut back on this year. With the savings from this one expense, allocate that money into a retirement account. You may find this exercise motivates you to find more expenses to cut back on in your budget, but it’s okay to take this one step at a time.
Reevaluate Your Goals
Even after a “normal” year, it’s still smart to reevaluate your retirement goals. Things change, priorities adapt, and you may have new opportunities or constraints that require you to revise your goals.
Perhaps you had visions of traveling during retirement, but once grandkids (and the coronavirus) entered the picture, you realized you’d rather spend more time at home. Or maybe you planned to purchase a second home in retirement, but now the prospect of working longer to finance that dream no longer seems worth it.
Wherever you are in your retirement planning, or however long it’s been since you reviewed your plan, there’s no better time than now to create or update a realistic plan to increase your chances of reaching your goals.
Get Back on Track Today!
If you want to make sure your retirement plan is on track, we’d love to help you get started. Reach out to me at danielkorleski@cobaltprivatewealth.com or 719-332-3863 to schedule an introductory meeting.
About Dan
Daniel Korleski is the President & CEO for Cobalt Private Wealth, where he helps his clients grow, manage, and protect their wealth so they can work toward a stronger financial future. With over 30 years of experience in the financial services industry, Dan has served as the managing director for Investment Trust Company, chief investment officer for the Wealth Management Group at American National Bank in Denver, and regional investment manager for the Greater Colorado Region of the Private Bank at Wells Fargo, where he oversaw the management of over $2 billion. In 2008, he was appointed by the mayor of Colorado Springs to the City’s Investment Advisory Committee. Dan holds an MBA in investment management from Midwestern State University in Wichita Falls, Texas, a Bachelor of Science in Finance from Florida State University, and is a member of both the CFA Society Colorado and The Financial Planning Association.
Dan loves to give of his time to his community and has served as Chair of the Board of Trustees of Pikes Peak Hospice Foundation, the Board of Directors of Catholic Charities of Central Colorado, President of the Broadmoor Rotary Club and Vice President of the Board for the Pikes Peak Chapter of Trout Unlimited. Dan was born and raised in Spain and is fluent in Spanish. When he’s not working, you can find him traveling around the world with his wife of 23 years, Montse, fly fishing, golfing, and hiking with his golden retriever, Curro. To learn more about Dan, connect with him on LinkedIn.
