There Aren’t Many Universal Truths in Preparing for Retirement, But There are a Few

January 17, 2024

By cdarmody on January 17, 2024

Here at Curi RMB Capital, we offer many different pieces of advice for people thinking about retirement. Everyone’s financial goals and situation are different, and yet, there are several basic guidelines that apply to nearly everyone, no matter what the future holds. 

One early mistake an investor can make seems simple but is very important: waiting too late to start saving. The earlier you start, the more time you have to build your accounts thanks to compound interest – and that can mean you actually need to save less along the way. The longer your money grows through investment gains, the more you’ll have in the end. Saving early and regularly also enables you to invest in the market at different prices along the way – sometimes high, other times low, and that’s the sweet spot.

Another stumble an investor can make is taking heavy withdrawals from a portfolio early in your retirement. Large early withdrawals have more of an impact on a financial plan than withdrawals in later years. In times of higher or sustained inflation, especially with health care and long-term care costs, you will likely need to rely on growth of your portfolio to keep up with future costs. If your portfolio can’t keep up with inflation, you could face a cash shortfall in later years.

To help mitigate this, consider working with a professional adviser to set up a financial plan that weighs the risks of longevity and then stress test that plan with various life expectancies, expected portfolio returns, and corresponding asset allocation volatility measures. You may not be able to precisely follow a financial plan since we don’t know exactly what the future will bring, but you can gain perspective on the impact of life expectancy and market and investment risks to help you feel more comfortable with the range of outcomes. 

Finally, if you’re concerned about long-term care costs, you can reduce dependency on your portfolio by buying long-term care insurance or setting up income streams beforehand, such as a guaranteed annuity. Talk to your advisor about which options fit best with your goals and situation. 

By applying these “universal” lessons, you can start building a financial approach to retirement that works best for you. Contact your Curi RMB Capital advisor with questions or reach out to get started today.


The opinions and analyses expressed in this newsletter are based on Curi RMB Capital, LLC’s (“Curi RMB”) research and professional experience are expressed as of the date of our mailing of this newsletter. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is it intended to speak to any future time periods. Curi RMB makes no warranty or representation, express or implied, nor does Curi RMB accept any liability, with respect to the information and data set forth herein, and Curi RMB specifically disclaims any duty to update any of the information and data contained in this newsletter. The information and data in this newsletter does not constitute legal, tax, accounting, investment or other professional advice. Returns are presented net of fees. An investment cannot be made directly in an index. The index data assumes reinvestment of all income and does not bear fees, taxes, or transaction costs. The investment strategy and types of securities held by the comparison index may be substantially different from the investment strategy and types of securities held by your account. RMB Asset Management is a division of Curi RMB Capital. 

Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. 

Investments & Wealth Institute™ (The Institute) is the owner of the certification marks “CIMA,” and “Certified Investment Management Analyst.” Use of CIMA, and/or Certified Investment Management Analyst signifies that the user has successfully completed The Institute’s initial and ongoing credentialing requirements for certifications.

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