Greetings! I hope that this finds you well and enjoying life.
We are starting the New Year in the markets the most volatile ever recorded. At one point in the last two weeks the DOW was down 14% off of its all-time high back in September! That’s making a lot of people nervous about providing for themselves in retirement. Are you?
Having a portfolio that matches who you are is the key to peace of mind in times like these. In that way regardless of what the stock market does or bond markets does or interest rates do, you’ll do the best that you can do. In other words own asset classes that closely correspond to your objectives. My experience has been that investors experience frustration and often don’t accomplish their objectives, because they own types of investments that don’t match who they are.
One of the fundamental tools to peace of mind in retirement is an adequate, consistent income plan. A good way to accomplish this is to have enough invested in specific income generating assets to meet your day to day living expenses. Asset types that provide income which are consistent and reliable. Some examples might be certain types of real estate, bonds and annuities. Annuities are utilized by a growing number of retirees today in their income plans. When you buy an annuity in essence what you do is pensionize a portion of your assets or create a private pension for yourself. By annuitizing a portion of your assets to provide for your day to day needs, you take the uncertainty out of what’s going on in the markets as far as your day to day needs go. Sure fluctuations in the market might affect your wealth level in other ways, but by annuitizing a portion of your assets you’ll have the certainty that your living expenses are met and furthermore that you won’t outlive your money. Annuities come in many forms and can be complex, so you’ll want to do your homework before you buy. And annuities aren’t for everyone, however a well structured income plan is.
Markets come and markets go that’s their nature. By having a well thought out reliable income plan in retirement, you’ll enjoy this special time in life a lot more.
If I can provide information on any of the above or assist you in your retirement planning don’t hesitate to call.
Jeff Christian CFP, CRPC