When was the last time you revisited your investment strategy and/or asset allocation?
As you are approaching or are at retirement age, it is important to re-visit your current investment strategy. The risk profile you currently have may no longer be appropriate. Inflation also may now be more of a direct concern. It is important to ensure that you have a significant portion of your portfolio in cash-equivalents to take care of any short-term cash flow needs. The allocation of longer-term assets can be adjusted accordingly.
Have you done an analysis to determine what a worst-case scenario for your portfolio might look like?
What happens if the markets absorb another 25%, 30% or 40% loss in the next few years? In that scenario, can you still afford to live your retirement as planned? If not, it might be time to revisit your strategies and assumptions.
Do you know how much cash you can count on from Social Security, your investment accounts, and other income sources? And when that cash is available?
Many (if not most) retirees have multiple income streams throughout their retirement. These generally range from RMD and Social Security checks to passive income and part-time employment. It is critical for retirees to understand when certain funds should and can be drawn upon, when funds are not available and how that can impact their overall cash flow and income needs.
For a complimentary Investment Strategy, Worst Case Scenario, or Cash Flow Analysis, Contact us today.