Strategies for Investing in Retirement
Curtis has earned the Life and Health Insurance licensure, has passed the Series 66 examination, and has earned a degree from the University of Nevada, Reno. He has over 20 years of experience in the financial industry, helping others protect, grow and manage their wealth. Curtis helps clients create customized strategies for their portfolios based on their unique financial goals.
STRATEGIES FOR INVESTING IN RETIREMENT
It goes without saying as we get older things change and evolve and as we move toward retirement this usually means we need to change and evolve our strategies for investing as we are leaving what we call the accumulation phase of our financial lives to our decumulation phase of investing. The strategies used as one grows their savings for retirement may no longer make the most sense to use going forward so let’s talk about a few different strategies for investing for retirement. With that in mind, remember no strategy is going to be “one size fits all” or “plan a, b, or c.” This should be an investment strategy tailored to your risk tolerance as well as using investment tools that you understand and are comfortable with.
HOW TO FIND THE ROOT OF YOUR STRATEGY
First, let’s look at our standard portfolio whether that is a stock and bond portfolio or ETF portfolio. This mix should be something that you are comfortable with and positioned to where you understand your risk exposure. When one is in the accumulation phase it is usually a focus on growth, and how much we earn, and while earnings are still important it is even more important to find the right tools in this space to understand what happens in a worst-case scenario. If a market downturn occurs, how much can we lose? Will this adversely affect your income and live the lifestyle you expected in retirement? Your loss exposure becomes just as important as what you can gain in retirement.
ADDITIONAL STRATEGIES TO CONSIDER
Other strategies may include using safer tools for a part of your portfolio, especially if you are using something like the bucketing strategy. (Essentially using different levels of risk for different time horizons.) Some strategies that may be utilized here would be CDs, high-yield savings, fixed-indexed annuities, etc. All of these tools will take downside risk off the board if the appropriate tools are used, but keep in mind that all tools do not work in all situations, and make sure you understand the pros and cons of each investment tool that you own.
WHERE TO GO FROM HERE
In conclusion, there are many different investment strategies you can use in retirement from traditional portfolios to dividend stocks, to certain annuities and certain savings tools. The most important things to keep in mind about your strategies are your risk tolerance and your risk exposure, but please make sure you understand the tools you are using and why you are using them. This should be a key part of your knowledge or your relationship with your financial professional. To see what this looks like for you and to schedule a retirement analysis with one of our advisors, call our office at 775.853.9033 or click here.
Based in Reno, NV, Cornerstone is for individuals and families looking to grow wealth, protect and preserve their life savings, and plan for the distribution of their estate in a tax-efficient manner through a tailored strategy. Schedule a time to discuss your financial goals with us.
The information contained herein is (1) for informational/educational purposes only, (2) is not a recommendation to buy or sell any investment, and (3) should not be construed or acted upon as investment advice. The information contained herein was obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness.
Past performance is no guarantee of comparable future results. No guarantees expressed or implied. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. Investing involves risk. Investors should be prepared to bear loss, including total loss of principal. Diversification does not guarantee investment returns and does not eliminate the risk of loss. Fixed insurance and annuity product riders, features, and guarantees are subject to the claims paying ability of the issuing company.