3 Ways To Win In A Down Market And Win BIG In An Up Market

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

As you approach retirement it becomes increasingly important to protect your portfolio.

It’s so important, because you want to ensure that a market correction doesn’t delay your retirement.

This can force you to retire on less income than you had planned on having, or worse, having to work longer than anticipated!

There’s a critical time period where protecting your money, or implementing Safe Money Strategies is so important.

It’s the few years leading up to retirement…

AND the first few years that you start to draw retirement income from your portfolio.

Luckily, you can win no matter what happens in the market, and here are 3 ways to ensure you do:

✅ Protect Retirement Income From Market Losses

Determine exactly how much fixed income you NEED in retirement.

Social Security will likely be a primary source of income, but you may need some additional fixed income as well.

This will diversify the most important element of your portfolio in retirement…

…Your Retirement Income.

Having the bulk of fixed income INDEPENDENT of the performance is incredibly valuable.

It means that you have enough income to prevent yourself from having to draw income out of the market (after it has suffered a loss)!

✅ Leverage Income Guarantees For Increased Market Participation

Income annuities are not only valuable because of their leveraged income payments…

Or the fact that they provide guaranteed, lifetime income.

They also allow you to participate in the market at a higher level (while also gearing your investments more for long-term growth rather than for income generation)‼️

Annuities allow you to take income withdrawals at 6% (or more), which is significantly more than simply following The 4% Rule.

This means that it takes less of your portfolio to generate the necessary income you need, so more money can stay allocated in your growth bucket!

✅ Don’t Lose Money When You Have The Most (you can be more aggressive later in retirement)

The worst time to lose money is when you have the most…

Which is likely on Day 1 of your retirement.

So make sure to decrease the risk of your portfolio leading into retirement.

You also want to be sure to effectively manage the early years of retirement (so you don’t put too much stress on your portfolio by withdrawing too much retirement income).

But, once you get through the early years of retirement you can invest much more aggressively (gearing your portfolio for more growth and the potential to grow your wealth and build a larger legacy).

Or, you can spend more than you had originally planned (which sounds like more fun to me anyways)!🍷 ⛵️ 🏖️

Let’s Chat 💬😎