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What are Your Financial Priorities in the New Year?

As the new year begins, so too does the quest for securing a fulfilling retirement. Whether you're just entering pre-retirement or already enjoying your golden years, navigating the financial landscape can feel daunting. Let's together explore some key considerations to help your nest egg thrive in 2024 and beyond.

The Inflation Beast:

2023's inflation surge has left many budgets bruised. Although the inflation rate is nearing the FED's target rate of 2% the feeling is it will linger into the new year retracting slowly in 2024. To protect your purchasing power, prioritize inflation-protected investments like TIPS (Treasury Inflation-Protected Securities) and I-bonds. These investments adjust their principal and interest payments based on inflation, ensuring your money keeps some of its muscle.

Shifting Gears: From Growth to Stability:

As you near retirement, your risk tolerance might take a dive. Meaning, some will become more risk resistant as they become older. The hair-raising rollercoasters of youthful investing may retreat to less risk and more gentle slopes become more appealing. So, gradually you may want to rebalance your asset allocation from growth-oriented stocks and towards stable income providers like bonds and fixed-income funds or other investment options. Remember, consistent cash flow could be more crucial in retirement for covering daily expenses.

Beyond the Numbers: It's About Income, Not Just Growth:

Retirement isn't just about the size of your nest egg, but also its ability to generate regular income and if needed to cover additional expenses. Explore income-generating investments like dividend-paying stocks and REITs to supplement your pension or Social Security. Think of it as building a money-making machine that churns out regular dividends, allowing you to truly live off the fruits of your investment choices.

Healthcare Costs:

The US Health Care Inflation Rate at the end of November 2023 was 0.17% up from the previous November which is lower than the long term average of 5.15%. To prepare for these potential curveballs, consider investing in HSAs (Health Savings Accounts). These tax-advantaged accounts let you save for future medical bills using pre-tax dollars, growing your nest egg while potentially reducing your tax burden. Long-term care insurance might also be worth investigating, depending on your individual needs and family history.

A Generational Shift in Retirement Planning:

Millennials and Gen X-ers are marching towards retirement with different expectations than their predecessors. Sustainability, social responsibility, and technology could play a bigger role in your financial decisions. Socially responsible investing (SRI) that prioritizes companies with positive environmental and social impacts have been gaining traction, while independent advisors and digital investment platforms are making financial planning more accessible and affordable for younger generations.

Remember, It's Personal:

Retirement planning isn't a one-size-fits-all. It's about envisioning your ideal retirement and tailoring your finances to make it a reality. Whether it's globetrotting adventures, pursuing creative passions, or spending quality time with loved ones, let your dreams guide todays financial decisions and infuse them with meaning and purpose.

Taking Action in 2024:

As the new year unfolds, review your retirement plan in light of these evolving trends. Contact us at We can help you to adjust your investment strategy to prioritize your overall financial well-being. Make 2024 the year you build a nest egg that not only survives, but thrives, allowing you to embrace your retirement dreams with confidence and joy.

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