Finance 101: Preparing for retirement

CAPE GIRARDEAU, Mo. (KBSI) – “Retirement’s not a destination; retirement’s just the turning of a chapter in your journey,” Sam Schwartz of Anchor Pointe Wealth Management said.

And preparing for that next chapter is essential. 

The reality is that folks don’t just decide to retire overnight,” Schwartz said. “Often, this is an event that folks sneak up to over a 3-, 5-, 7-, 10-year period, and it’s about getting your backpack ready for retirement.” 

So, what’s in that backpack? Schwartz said for the year ahead, it will be about getting back to the basics. 

“As we approach this year, it’s about getting back to blocking and tackling, thinking about where there are opportunities to increase savings, whether it’s inside of a retirement plan or elsewhere,” he said. “Where can I maybe cut some of my spending, whether it’s eating out, maybe it’s subscription services, maybe it’s cutting back on travel?” 

Stocks and bonds each saw negative returns of more than 10 percent in 2022, which is unprecedented. 

However, the first month of 2023 saw a nice rebound for bonds, which Schwartz said could be a nice addition to your investment portfolio. 

“I think bonds offer opportunity to offset risk, right, from equities, opportunities to offer returns inside of a client’s portfolio, and also opportunities to essentially develop and deliver a sequence of return or income for investors,” he said.

So, as we tackle 2023, Schwartz does not anticipate it being a perfect year, but relatively speaking, there is reason for some optimism, albeit cautiously so. 

“I think we are in for a choppy year, but I think people will see the way markets respond,” he said. “It will be more resilient, certainly, than what we saw last year, so I think there’s reason, I think, if there is a tone to this conversation, there’s reason for cautious optimism as we move forward.” 

And while annuities have become popular, Schwartz advised people to analyze this asset’s place inside their portfolio before investing in them.

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