right balance between fixed income and growth within your retirement plan is a
challenge but certainly one that can be managed.
Here is the challenge:
retirement, we want our investments to generate income for us which means our
investments are paying out money to us in the form of a ‘
retirement paycheck’. HOWEVER we are unsure how
long we will live so we also need our investments to have some
component so our investment portfolio continues to generate income for us no
matter how long we live.
the rub as they say.
the challenge of not knowing how long we will live there are some other factors
that add to the challenge such as:
chosen standard of living in retirement
Even with so
many factors to consider there are few tips that apply to most people who are
just entering or in retirement:
as was recommended when you worked, having a portion of your portfolio in
short-term liquid assets (those that can be converted to cash quickly) is still
an important component of your retirement portfolio. We recommend maintaining this rainy day fund
throughout your retirement years to help offset potential downturns in the
- Stock allocation within a financial portfolio should
vary with age. For the ‘typical’
investor, the key point is that as someone progresses from early retirement to
later retirement their stock allocation should decline.
your entire portfolio and all income streams.
If you receive
Social Security or other guaranteed fixed payments (e.g.
a pension) your exposure to the volatility of the stock market is less so you
may be able to allocate more of your investment portfolio in stocks.
portfolio requires balancing income, stability, and growth. For most people, finding the proper balance
between risk and return can be quite challenging. And unfortunately there is no ‘one size fits’
all answer that solves this challenge.
We can help
you navigate through these waters so your retirement is spent doing the things
you want to do with the confidence that your personalized plan is working for
give us a call to set up a
time to meet.
Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected.