Certainty in Uncertainty

Greetings! I hope this finds you well and enjoying life.

Here we are at a high point in the cycle of economic uncertainty. I say in the cycle because economic uncertainty is cyclical like stocks are cyclical, bond prices are cyclical, real estate is cyclical and pretty much any asset class is cyclical. Factors making up economic uncertainty are varied and numerous and lately just seem to continue to stack up. Is our economy expanding or stagnant? When will the FED move to raise rates and what effects will it have on our markets? Stock prices in the US are as high as they’ve been since 2004, are they poised to decline or move ahead? What impact will the slowdown of China’s economy and the shenanigans their government is exercising to prop up their stock market and the value of the Yen have on our markets and economy? Greece struggles and the European Union takes draconian measures to keep it in the union, fearing that if they default other more prominent economies in the union like Spain and Italy might quickly follow suit. Will we elect a president in the US who will straighten out the mess in the US? There’s a lot going on is there not, to make us feel like we are at a relatively high point in the cycle of economic uncertainty?

As a retiree how do you manage the uncertainty in the cycle? Here are several strategies to consider. Make sure that you have consistent income sources that generate the cash flow that you require to operate with on a day to day basis. Maintain sufficient cash reserves for foreseen or unforeseen needs equal to from one to three years income. Subscribe to a portfolio that matches your unique profile as an investor based on your objectives, needs and how you feel about volatility and risk. For most, this changes over time as retirement unfolds.

Managing inevitable uncertainty as best we can is key to peace of mind and fundamental in a retirement plan. If you have questions or concerns about any component of your retirement or retirement plan call us and let’s work it out.

Best regards,

Jeff Christian CFP, CRPC

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