3 Ways to Ensure Your Retirement Portfolio Does Well in All Conditions

(don’t forget to checkout the video of this blog)

Surely you can’t do well in ALL market conditions….

Or can you⁉️

Certain buckets of money will be tied to the performance of the market, but that’s why it’s important to diversify (so that not all of your money is tied to the performance of the market).

Here are 3 ways to ensure your retirement portfolio does well in all conditions:

✅ Participate in the Market

I know the volatility of the market can be tough to stomach sometimes…

But, it’s still the best way to grow your wealth long-term.

Because of the volatility of the market it tends to be an inefficient source of retirement income (fluctuations & unpredictability make it difficult to generate a fixed income from).

But the market also has the ability to average 9–10% per year over a long period of time…

And most people still have 20–30 years to keep a large percentage of their retirement assets invested in retirement.

That means that your wealth in the market can double 4 or more times in 30 years‼️

So don’t completely avoid the market (even if you’re a bit market-averse).

✅ Protect Some of Your Wealth From Market Losses (i.e. safe money)

I commonly refer to this type of money as Safe Money.

This can be money in CD’s, real estate equity, even cash stuffed under your mattress (which I don’t recommend haha!)

Or it can be money that is contractually guaranteed not to go backwards.

In other words, 100% principal protection (+ guaranteed growth options).

Why is this so important⁉️

Because we will all inevitably experience some down markets at some point in our retirement…

So we don’t want ALL of our money subject to big losses in years the market doesn’t do well.

✅ Protect Your Retirement Income From Market Fluctuations

One of the biggest reasons people fall short of their retirement goals is market timing.

Nobody knows what the market is going to do…. (no, not even me!)

So if all of your wealth is invested in the market you can simply get unlucky…. 🍀

Meaning the market drops right as you plan to retire!

This can easily set your retirement back a few years.

That’s why it’s so important to build some market-proof, guaranteed income into your plan.

This allows you to continue growing a source of fixed, lifetime income leading up to retirement…

While simultaneously protecting and insulating you from a untimely market crash.

Let’s Chat 💬😎