Greetings! I hope this finds you well and enjoying life.
Here we are again 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 slowing? How often will the FED move to increase rates and what effects will it have on our markets? Stock prices in the US are almost as high as they’ve ever been, are they poised to decline or move ahead? What impact will the war in Ukraine have on the world economy? Will altered trade with China be highly disruptive for our economy? What will mid-term elections bring to us economically? There’s a lot going on is there not, to make us feel like we are at an elevated 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 folks, this changes over time as retirement unfolds.
Managing inevitable uncertainty as best we can is paramount 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.
Jeff Christian CFP, CRPC
In the courageous standing of uncertainty, faith shows most visibly its dynamic character.