The Most Important Years Not To Lose Money in the Market

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

Nobody likes to see their money go backwards.

I know you don’t… and I certainly don’t like to either‼️

But, some losses matter a lot more than others.

Big market losses in your early years of saving for retirement are not very impactful.

That’s because you have a lot of time to recover.

But everything changes when you start putting together your Retirement Income Plan.

Protecting your portfolio from large losses in the 5–10 years leading up to retirement is critical…

… and so is the first 5–10 years of actual retirement.

That’s because a large loss in this time period puts your entire income plan at risk!

This is often referred to as The Sequence-of-return Risk.

Which is the risk of unlucky market timing negatively affecting the success rate of your portfolio.

This is why I think it’s so important to incorporate my Safe Money principles into your retirement planning.

This means protecting a segment of your portfolio from market losses in the critical retirement “redzone” window.

This often means creating sources of market-independent income to help remove volatility from you overall portfolio.

This doesn’t mean you have to take all of your money out of the market (which you don’t want to do either).

But it protects a sizeable amount of your retirement assets from suffering an unlucky loss that you might not be able to recover from.

This significantly increases your chances of a successful retirement.

In fact, once you get through this critical time period, you can even start allocating more of your money into the market (geared more for long-term growth).

This can give you a greater opportunity to build a legacy, leaving a larger amount of wealth to your loved ones (tax-free if done correctly).

While also protecting your portfolio from a critical loss at a critical time.

We all deal with market volatility in different ways.

And participating in the market is STILL IMPORTANT.

We just want to be sure we are not exposing TOO MUCH of our portfolio to a large loss in the most critical years.

Let’s chat 💬😎