4 Reasons To Protect A Segment of Your Portfolio From the Market (in preparation for retirement)‼️

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

I am a huge believer in the stock market.

Especially for its long-term growth potential‼️

If you look at the market over a 30-year period you will typically average OVER 10% per year.

That means your money would double every 7 years (on average).

There really is no better way to GROW your wealth over time.

But, as you close in on retirement it’s important to PROTECT some of your money from market volatility too.

Here are 4 reasons you need to protect some of your money leading up to retirement:

✅ Reduce Exposure to Sequence-of-Return Risk

The biggest risk leading up to retirement is the risk of poor market performance in critical years.

This can very negatively affect your retirement income plan.

If the market happens to drop significantly, in the years that you are planning on withdrawing income, it can create a huge problem.

It can put you in a situation where you are withdrawing more income than your portfolio can safely support!

✅ Don’t Take on Unnecessary Risk

As you get close to retirement you are likely VERY CLOSE to your retirement income target.

Meaning you may want to shift your focus away from any unnecessary market risk (that could only end up delaying your retirement).

You may be in a situation where you want to shift your focus to wealth preservation and generating retirement income.

✅ Creating an Income Plan Requires Predictability

Knowing exactly what you need to retire comfortably is step one.

The next step is ensuring that you can predictably cover your income needs for as long as you live.

Obviously, how long you’re going to live is tough to predict.

And that’s part of the reason people value predictable income sources like: Pensions, annuities, and Social Security Income.

This predictabiliy allows you to fully enjoy retirement as stress-free as possible.

✅ Predictable Income Allows More Money to Stay Invested for Growth

Income annuities can be a great way to maximize your retirement income.

But they also provide a huge benefit it that is often overlooked!

They can also provide you the ability to keep more money invested (aggressively) for long-term growth.

It’s been shown in many studies that people with predictable income in retirement are actually better investors as well…

Which means they actually see higher returns in retirement (as opposed to people with little or no guaranteed income)‼️

That’s why I think it’s so important to create a perfect balance of Safe Money leading into retirement (and exposure to the long-term growth potential of the market)

Let’s Chat 💬😎