There’s a lot of investing advice out there, but how do you know what’s right or what’s right for your specific situation? The rules can change a bit when you get closer to and enter retirement, and the world of investing is constantly changing. There’s a lot to know about investing in retirement, and we can help you learn.
The World of Investing Has Changed
Cryptocurrency? Non-Fungible Tokens (NFTS)? The world of investing has changed quite a bit during your lifetime. During this time of low-interest rates and high inflation, those nearing and in retirement should consider how they will make their money last for the rest of their lives. There could be investing strategies available to you that you don’t know about or haven’t considered in the past that a financial advisor can teach you about.
Your Risk Tolerance Can Decrease
A market correction could pose a particular threat to you as you near and enter retirement. Two retirees with identical wealth and long-term market averages in retirement can have very different financial outcomes depending on the state of the economy when they begin retirement. Someone retiring during a bear market might see their portfolio recover as the market does, but they may also see a reduction in the overall return of their portfolio because of how much they had to withdraw early on when prices were down.[1] Have a plan for how you would handle a major market correction this year and in the future.
A Plan is Different From a Portfolio
Now that you’ve accumulated wealth, the question becomes how you’ll use it to fund your retirement. This can be complicated because having a portfolio isn’t the same thing as having a comprehensive plan. You may want to think about how you’ll draw down your assets so that your tax bill is minimized, whether you’re taking on an appropriate amount of risk, and what your retirement lifestyle goals are. You may also want to rethink one-size-fits-all investing advice like the 4% rule, which says you can withdraw 4% from your 401(k) each year to make it last throughout retirement.[2]
Work with us to create an investment strategy designed to fit you. Retirement shouldn’t be a time of anxiety or worry; it should be a time when you feel financially secure and can enjoy the money you’ve worked hard to earn for decades. Sign up for a time to talk to us about how we can help.
[1] https://www.investopedia.com/terms/s/sequence-risk.asp
[2] https://www.investopedia.com/terms/f/four-percent-rule.asp
Please Note: Epstein & White is a tradename. All services provided by Epstein & White investment professionals are provided in their individual capacities as investment adviser representatives of Mercer Global Advisors Inc. (“Mercer Advisors”), an SEC registered investment adviser principally located in Denver, Colorado, with various branch offices throughout the United States doing business under different tradenames, including Epstein & White. Information contained herein is for informational and illustrative purposes only and general in nature. It should not be considered investment advice or a recommendation to buy or sell any type of securities or insurance products and no investment decision should be made based solely on any information provided herein. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas.
Investment in securities carries a risk of loss, including loss of principal amount invested. Different types of investments involve varying degrees of risk. It should not be assumed that diversification or asset allocation protects a portfolio from loss or that such will produce profitable results. An annuity’s guarantee is subject to the claims-paying ability of the issuing insurance company.
