I have 2 unhealthy food favorites: fried chicken and donuts. I try to limit my exposure to these. That means rarely having donuts in the house.
As for fried chicken, I generally only eat it once a month. This is usually the 3rd Sunday of the month, also known as “fried chicken” day at church. We bring in a big platter of it for lunch after worship service.
When you get closer to retirement you may get a little bit more apprehensive when it comes to risk.
I’m reminded of the times when I was younger and had to perform at a piano recital. Talk about being nervous.
Well, that nervousness is how a lot of people (perhaps even you) feel when it comes to investing their retirement funds. Especially when you are approaching the day of retirement within the next 5 to 15 years.
What’s the difference?
Why is it harder to handle volatility in the stock market when you near retirement?
It’s simple. When you retire you lose your paycheck. You are dependent on your savings to supplement any income you get from Social Security and a pension.
If your savings take a hit in the market it hurts a lot more when you don’t have a regular paycheck from work to fall back on.
This means investing in (and near) retirement is a bit different than investing during your accumulation years.
The mindset has to shift to one of responsible de-accumulation of savings. The savings are being used to support your lifestyle, and you need them to last a long time. And when the investments are not properly handled it increases the likelihood of running out of funds during retirement.
There are 3 important aspects to investing for the retirement stage of life:
Generating growth to keep pace with inflation
Generating sufficient income
Because these are important goals for retirees, here are some popular options of investments for retirement.… Continue Reading
One of the most common questions I hear is “How much do I need to save to retire?”
Think about how important it is to get this question answered accurately.
The correct answer to this question can mean the difference between retiring comfortably for the rest of your life… or retiring only to have to go back to work because you miscalculated how long your savings and investments would last.
This question of “How much do I need to retire?” was directly asked of me by a couple looking to retire within the next year.
The husband had already retired, but the wife was still working. She was going to continue working until she could draw Social Security in approximately 10 months.
I’m always more comfortable when a couple waits until they can start drawing some type of retirement income check. Having a guaranteed income source in retirement takes pressure off a portfolio to provide income.
And in today’s world I think it is even more important to be as prudent as possible when it comes to planning for retirement. That guaranteed income from Social Security (or any other source like a pension or annuity) just gives that extra bit of support to a plan that is so important.… Continue Reading
If you could get ALL the market’s growth, wouldn’t you want it? Sounds good, right?
But what if there were a downside to all this?
There’s always a trade-off with anything in life. We understand the old cliché that you “Can’t have your cake and eat it too.”
The same applies to investing, and especially investing in retirement.
One of the most popular products designed for retirees today is the Fixed Index Annuity. The main benefit of it is you can’t lose money in the market, but you get to participate in some of the upside when the market rises.
You can see the trade-off with this arrangement. You get some of the market upside. The benefit is you get no downside.
This is a reasonable trade-off for many retirees for a portion of their portfolio. This is primarily a good trade-off for many retirees because protecting their investments becomes even more important as they near, and enter, retirement.
But what if you wanted ALL the market’s growth? Let’s talk about that. Specifically, let’s answer the questions:… Continue Reading
A retirement investment plan can be much different from how you invest during your early working years.
At this stage in life you’re facing different challenges. One of these challenges is you have less years ahead of you to earn an income. Another challenge is that when you retire you’ll be more dependent on the performance of your portfolio than you were when you were still earning an income.
Both of these realities point to the importance of helping preserve your principal. It’s always important when investing to help protect your investments on the downside. But it becomes even more important as you approach and then enter into retirement.
Since a retirement investment plan is going to be different from the general investing plan you would have had in your early years of working, it’s important to look at 5 essential features you need to consider when investing for retirement.
Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor. Tri-State Financial Group, and Tri-State Insurance & Financial Services, and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.
This information is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Tri-State Financial Group and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.
Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors. Chris Hammond is insurance licensed in TN.