![]() Experienced financial advisor Darcy Bergen serves as president of Bergen Financial Group, with offices in Peoria and Phoenix, Arizona. As a retirement planning advisor, Darcy Bergen advocates for money strategies that reduce risk. Though market volatility is always a factor in investing, it becomes especially impactful for individuals nearing retirement. Diversifying a portfolio doesn’t go far enough for soon-to-be retirees who may need to rely on the return from their investments to pay for living expenses. Here are some considerations for managing a changeable stock market near retirement: Don’t Panic Historically, the market recovers within 16 quarters. However, selling stock due to fear during low times can result in huge losses. Experts advise following a sensible, individualized plan that considers years until retirement, money needed for living expenses, and the timeframe for the market’s recovery. Rely on Cash in the Short Term Experts advise having three to four years of living expenses in highly-liquid assets, such as savings accounts and certificate deposits (CDs). Access to this money can give retirees financial peace of mind and avoid withdrawing money on investments. Think of the Long Term Even the lowest-risk investment strategies are subject to inflation and reduced buying power. For this reason, retirees should always have some investment in higher-risk, but higher-return stocks. The ratio of low- to high-risk investments should increase with age. For example, people 55 or younger may put 100 percent of their investment in equities, while those three years or less from retirement age may reduce this to 70 or 80 percent and put the remainder in more stable bonds. Investment advisory services offered through Horter Investment Management, LLC, a SEC-Registered Investment Advisor. Horter Investment Management does not provide legal or tax advice. Investment Advisor Representatives of Horter Investment Management may only conduct business with residents of the states and jurisdictions in which they are properly registered or exempt from registration requirements. Insurance and annuity products are sold separately through *Insert Name*. Securities transactions for Horter Investment Management clients are placed through TCA by E*TRADE, TD Ameritrade and Nationwide Advisory Solutions.
0 Comments
Your comment will be posted after it is approved.
Leave a Reply. |
Archives
November 2019
Categories
All
|