Nick Forgione
Wealth Preservation Strategy in Retirement
Retirement marks a new chapter with more freedom and fewer mornings with alarm clocks. It also comes with new responsibilities. For many people, the goal shifts from building wealth to preserving it.
Wealth preservation in retirement means sustaining your lifestyle without financial stress. It includes covering everyday expenses, preparing for the unexpected, and leaving room for the joys of life such as travel or helping family, all with confidence.
Embracing the Mindset Shift
It can feel unsettling to move from accumulation to decumulation, watching balances decrease after a lifetime of building them up. Even with a strong financial foundation, many retirees find it emotionally challenging to draw from their savings.
But if your plan is sound, your investments align with your goals, and your spending is within your means, it's okay to shift your mindset. This is the phase of life where you get to benefit from the work you’ve done. Retirement should be a time to enjoy, not just endure.
Understanding Wealth Preservation in Retirement
A strong wealth preservation strategy supports your lifestyle not just today, but for the decades ahead. It starts with understanding your current spending, investing wisely, and being ready to adjust as life changes.
One of the most effective tools is a financial plan that projects how savings, income, and investments will align with future expenses, adjusted for inflation.
The Blueprint: Creating a Financial Plan That Lasts
Building a long-lasting financial plan begins with clarity: What resources are available? What income will continue? What are your essential versus discretionary expenses?
Budgeting plays a key role, but that doesn’t mean sacrificing joy. The goal is balance. Enjoy life today while being mindful of tomorrow.
It also helps to factor in the usual suspects: inflation, healthcare costs, and market volatility. These are not one-time worries. They are ongoing considerations that can be built into your planning assumptions.
Adjusting and Staying on Track
Retirement is dynamic. It’s wise to review your financial plan at least once a year, looking at spending, income, and investments alongside any new goals or life changes. If your spending begins to outpace your income or portfolio growth, or if a major event occurs—such as a large purchase, caregiving needs, or family developments—it’s time to reassess.
To catch potential drifts early, start with a clear view of where your money goes today. Project future needs while considering inflation. If your resources still cover those needs, you're likely on a good path. But if something looks off, small course corrections can keep your plan steady without requiring drastic changes.
Encouraging Confident, Informed Spending
It’s common for retirees to hesitate even when their plan looks solid. The key is trust in your plan, in your process, and in your ability to adapt. The more accurate the data you use, the more useful your plan will be.
Retirement is long, and your financial picture will evolve. Early assumptions can be updated. The better you understand your plan, the easier it is to spend without second-guessing.
The Takeaway: Focus on the Big Picture
A strong retirement strategy is about more than numbers. It’s about confidence. It’s about knowing that with the right tools and mindset, your wealth can support both your needs and your dreams.
By staying flexible, revisiting your plan regularly, and understanding the road ahead, you can make the most of this chapter. Not just financially, but personally too. If you're thinking about your own retirement strategy and wondering whether your plan is on track, we're here to talk. A conversation can bring clarity and peace of mind.
Nick Forgione is a Certified Public Accountant and holds a Master's Degree in Accounting from the University of Massachusetts Amherst. Since joining Sachetta in 2022 as an accountant, Nick has worked on projects on both the individual taxation and wealth management side of our company.