Cortburg Speaks Retirement

Tips for Navigating a Volatile Retirement

July 28, 2021 Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® Season 2021 Episode 43
Cortburg Speaks Retirement
Tips for Navigating a Volatile Retirement
Show Notes Transcript

Retirement is the time in your life when you want to sit back, relax, and enjoy the fruits of years of hard work. But unfortunately, when the market is volatile, it may bring additional anxiety and stress. 

The good news is, a volatile market does not necessarily spell disaster.  In this week's episode, Miguel Gonzalez shares a few simple tips to reduce anxiety as you navigate through these times.

INTRODUCTION

Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

 

HOST

Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

Retirement is the time in your life when you want to sit back, relax, and enjoy the fruits of years of hard work. But unfortunately, when the market is volatile, it may bring additional anxiety and stress. The good news is, a volatile market does not necessarily spell disaster, and by following a few simple tips, you may be able to reduce anxiety as you navigate through these times.

Determine How Much Income You Have to Count On

It is unlikely that all of your retirement savings is linked directly to the markets. Often times, retirement income will consist of investments, along with Social Security, or a pension income, with the latter two being sources of guaranteed income. Your guaranteed income should be enough to cover all essential spending, such as food, housing, transportation, and insurance. That way, when your other investment income may be down, you will have enough for your needed spending and will be able to push off non-essential needs to a later date.

Look at Your Stock-to-Bond Ratio

It is often common to reduce the risk of your financial portfolio in the early stages of your retirement. This is done to help you settle into your new retirement life and create a more stable foundation for your future retirement. Reducing the risk in your portfolio will often result in selling more stocks and buying more bonds, which could provide you with a lower risk investment if the market sees some fluctuation. Talk with a financial professional about your stock-to-bond ratio to determine if your long-term returns could help you with your retirement goals, while still providing some stability against volatility.

Keep an Eye on Your Taxes

When you begin the withdrawal process from your retirement accounts, it is important to know the taxes that you will face with these withdrawals at the end of the year. Different types of accounts have different tax statuses, so it is crucial to understand the tax process with each one. For example, some may allow you to enjoy tax-free distributions, while others may require income tax to be paid on the withdrawn funds. By being aware of how each of these funds is taxed, you will be able to appropriately manage how you make withdrawals with each account to help with the tax burden at the end of the year.

Follow the few tips above to help you confidently manage your retirement through periods of volatility.

Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Retirement Specialist and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.  

DISCLOSURES  

Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

CRC conferred by The International Foundation for Retirement Education.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.  

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.

Investing involves risk including possible loss of principal.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

No strategy assures success or protects against loss.

1.     https://www.kiplinger.com/article/retirement/t047-c032-s014-5-tips-for-retirees-worried-about-stock-volatility.

https://www.foxbusiness.com/markets/top-retirement-tips-to-navigate-a-volatile-market