Personal FinanceJo Panuwat D / Shutterstock.comDavid BerenIf you’re a retiree coming into the new year, it’s a great time to think through your financial goals for the next 12 months. This could be an opportunity to rebalance your portfolio to reduce (or increase) your risk, or it might be an opportunity to think about some new projects you want to undertake.
The start of a new year is a great time to re-evaluate your retirement status in terms of learning a new hobby.
The first month of a new year is an opportunity to review your portfolio and ensure your risk tolerance is okay.
This is also a great time to review your budget and ensure you are not overspending.
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Unsurprisingly, billions of people worldwide make resolutions for the new year. This includes but is not limited to retirees who may want to do nothing more than improve their finances. However, this is also a great time to step back and ask yourself a few simple retirement-focused questions. Am I Spending Wisely In Retirement? This is the most important question anyone can ask at the start of a new year. One of the first things a retiree can do at the beginning of 2025 is to review their budget and ensure they are not overspending. The bottom line is that they need retirement savings to last, and overspending can be a massive danger to ensuring it does not. Start by evaluating spending habits and ensuring that disposable cash expenses, like going out to eat, taking vacations, or even those necessary spa days, are not costing more than necessary. Budgeting is critical in the new year because retirees want enough money to handle surprises like a home emergency. Do I want To Update My Portfolio Allocation? Regarding properly managing money, the new year is a great opportunity to see how a portfolio is balanced. For example, let’s say that right now, you have 10% in cash, 40% in stocks, and 50% in bonds. You might want to adjust these percentages based on your needs, updated expenses, budget planning, and potentially build up an emergency fund. You might see more growth outside the market, so you might want to reallocate funds to safer bets. Alternatively, suppose you see a good opportunity to cash out and reinvest in different stocks. In that case, this is also an option to discuss with a qualified financial advisor who can review the current portfolio and recommend changes. What Is My Contingency Plan for Unexpected Costs? While we can all hope that unexpected costs never happen, they can and frequently do. Combined with double checki