Investing for Safe Income + Long-term Market Growth in Retirement‼️

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

The biggest concern for most retirees is ensuring their money lasts.

Because of this concern, most people opt for a much more conservative investment strategy in retirement.

This has some merit to it.

You certainly do want to protect your retirement income from large market losses….

But, you don’t want to miss out entirely on the long-term growth potential of the market (even in retirement).

So you need a strategy that can account for both safety AND long-term growth.

This is a big part of the reason I’m a proponent for using an income annuity as part of your Retirement Income Plan.

Not only does this maximize your guaranteed, lifetime income…

But, it also allows you to be a bit more aggressive with your investments

The annuity significantly raises the Safe Withdrawal rate of your portfolio…

Which means you can dedicate less of your money to creating your necessary fixed income stream.

Meaning you rely less on the market for income, giving you the ability to stay invested for longer periods of time (uninterrupted), which typically leads to better returns in the market as well.

So not only does fixed income make you a better investor, it changes your timeframe on your portfolio income.

This gives you the ability to rely less on your portfolio for income (especially in years of poor market performance).

Not having to constantly pull income from the market means you can gear your investments better returns through a bit more aggressive allocation.

Think about it this way…

If you only need $20k per year from your portfolio for travel and you have $1M saved…

Only $20k of your investment account needs to be earmarked as a 1-year time frame

and another $20k is earmarked as being “needed” in 2-years…

And so on…

This means that the majority of your portfolio has a longer time frame than many people realize

You may be retiring this year…

But may have an average 15-year time frame on most of your investment dollars‼️

Longer time frame… typically leads to better returns (because it can stay invested longer).

That’s why you don’t want to follow the conventional wisdom to become super conservative at retirement…

You can with some of your money, and that’s what annuities are great for.

But, the money you have outside of annuities should be given more opportunity for long-term wealth-building.

This gives you the security of income with exposure to the upside of the market.

A true win-win.

Let’s Chat 💬😎