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with maturities under 12 months.
* Money you'll need in the next two to four years - Consider putting this into high-quality short-term bonds, bond funds, or CDs with maturities between two to four years.
2. Stay Invested and Diversified
A diversified portfolio could potentially help navigate the ups and downs of the economy. And spreading your investments across various asset classes - like stocks, bonds and real estate - may create a cushion against market volatility. Stocks, in particular, have historically outpaced inflation over the long term, helping to preserve your purchasing power. Overall, staying invested through market cycles rather than reacting to short-term fluctuations can be one of the best strategies for maintaining your wealth in retirement.
3. Revisit Your Emergency Fund
An emergency fund is crucial at any stage of life, but it becomes especially vital in retirement when income is often more fixed. In addition to your cash cushions, aim to keep enough in your emergency fund to cover about a year's worth of expenses, minus any guaranteed income from sources like Social Security or pensions. A high-yield checking or money market account can be a great place to store these funds, allowing for easy access in an emergency without penalties or delays.
4. Plan for Long-Term Care Costs
One of retirees' biggest worries is the
potential cost of health care, especially long-term care. To prepare, start by answering three fundamental questions:
* Who will provide care if needed?
* Where do you want that care to be provided?
* How will you pay for it?
From there, consider consulting with a financial planner to explore options that align with your needs. This might include long-term care insurance or other strategies to ensure your assets are protected. Addressing these concerns proactively can reduce stress about unexpected health costs in the future.
"This might include long-term care insurance or other strategies to ensure your assets are protected. Addressing these concerns ...."