The market’s hitting record highs and everyone’s buzzing. You check your portfolio and it’s looking pretty sweet. Feels good, right? The big question is… what now?
Some folks jump in with both feet, thinking the ride will never end. Others freeze up and just watch from the sidelines. But if you are earning well and still working toward that comfortable retirement, this is the perfect moment to make a few smart, maybe even boring, moves that will matter a lot later.
I have watched plenty of people in this exact spot. The ones who use this time wisely usually end up with more choices, more freedom, and way less stress down the road.
1. Rebalance Before the Market Does It for You
When stocks keep climbing, certain parts of your portfolio can start taking up more space than they should. That is not always a good thing. Rebalancing means selling a little of the investments that have gotten too big and moving some money into areas that are lighter.
It is not about guessing the top of the market. It is about keeping your risk where you want it, especially if retirement is five to ten years away. Think of it like straightening the shelves before they get too crowded.
2. Take a Hard Look at Taxes and Your Estate Plan
High markets can be a sweet spot for certain tax moves. Maybe you sell some investments to lock in profits while tax rates are decent. Or give appreciated stock to a charity and pick up a deduction.
Also, when was the last time you checked your will or trust? Or your beneficiary forms? If you have to think about it for more than two seconds, it is probably time to update them. This way your money and plans go exactly where you want them to go.
3. Stack Up Cash While Times Are Good
Cash is not exciting, but it is very handy when you need it. For retirement planning, it is a quiet safety net. Six to twelve months of living expenses in savings can help you avoid selling investments at the wrong time.
It also gives you breathing room for big purchases or surprise medical costs. I like to call it the “sleep well at night” fund.
4. Do Not Fall Asleep at the Wheel
When markets are flying high, it is easy to relax a little too much. That can be dangerous. Corrections tend to arrive with no warning.
Stay disciplined. Keep following your long-term plan. Make sure your retirement income strategy can hold up whether the market is up, down, or going sideways.
5. Check if Your Retirement Dream Still Fits
Life changes. Markets change. Sometimes the dream changes too. Maybe you planned to retire at 65 but now you are thinking earlier. Or maybe you want to work part-time just to stay busy.
Take another look at your numbers. Revisit plans for travel, hobbies, or moving to a new place. Adjust while you still have time.
6. Keep Dry Powder for the Next Opportunity
High markets do not last forever. When things cool off, you will want to be ready. That means having cash, keeping a diversified mix of investments, and having a plan you trust.
When everyone else is panicking, you will be in position to pick up quality investments at lower prices without putting your retirement in danger.
Bottom Line
Record highs are not a finish line. They are more like a pit stop. Use them to check your finances, secure your gains, and make sure your retirement plan can handle whatever is next.
At Babin Wealth, we help families close to retirement protect what they have built, reduce taxes, and get ready for any market environment.
Schedule your Retirement Review today.
