You face plenty of risks when investing for retirement, market crash and inflation can eat into returns. In my experience, sequence of return risk doesn’t get the attention it deserves.
The concept of a dollar being worth less tomorrow than it is today is a scary thought, but a hard reality. So, this week we are digging a little deeper into inflation and specifically how it affects those in retirement.
Today’s low interest rate environment makes annuities more attractive than bonds. While annuity payouts have dropped because of low rates, alternative strategies such as bond ladders, have been hit harder.
When it comes to spending down retirement assets, timing is everything. Your strategy will depend on where your assets are located, tax liability, and other considerations.
Social Security is a cornerstone of many retirees’ planned income stream, but it’s only one part of a sound retirement system.
Providing financial advice to adult children can be difficult; it’s important to create an environment of trust and respect.
The prospect of higher tax rates in the years to come can make the Roth IRA an attractive option for investors.
Retirement looks different to everyone. Whatever your plan, it’s essential to build a sound retirement system that factors risk, changing expenses, and what you need for your newest adventure.
The road to personal wealth requires the ability to see the benefit of long-term planning over instant gratification.
Risk needs to be managed on both sides of your retirement – during wealth acquisition and distribution. Smart retirement maximizes growth and alleviates risk.