Cortburg Speaks Retirement

Investing in your 60s and Beyond

April 17, 2024 • Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® • Season 2024 • Episode 184

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Cortburg Speaks Retirement - episode #184: Investing in Your 60s and Beyond 

This week Miguel Gonzalez, Certified Retirement Counselor, discusses investment strategies for those approaching retirement age. Learn how to assess your retirement needs, allocate assets wisely, and plan withdrawals effectively to ensure financial security in your golden years.

About Cortburg Retirement Advisors, Inc. 

Cortburg Retirement Advisors is a full-service, boutique financial planning firm - helping guide clients through turbulent and calm economies. Their goal is to help grow, protect, and preserve their assets from their first job through retirement. Cortburg’s “all in one house” capabilities mean that their experienced team can help with all financial needs - wealth management, estate and tax planning, group retirement, employee benefits, insurance, and retirement planning.    

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.

 

Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

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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.   

This week let’s talk about what investing looks like as you get closer to retirement age.

Once you are in your 60s, you are likely to focus less on growing your retirement funds than answering, "When do I retire?" 

And once you crack open your nest egg, how should you allocate its contents? The answer often lies in a substantial shift in your investment strategy. 

Here are some ideas for investing in your 60s and beyond.

Preliminary Questions

Before you settle on a plan, you need to be able to answer a few questions. These include:

● How long do you need your savings to last, and how long are you likely to live?

● How many years might you be in retirement?

● What are your expected annual expenses in retirement?

● What is your non-invested income, such as pensions, Social Security, and annuity payments?

By having an idea of how much you need in retirement and how much income you may expect to receive outside of your investments, you then calculate how much you need to withdraw from your retirement funds.

Allocating Your Retirement Assets

Everyone's safety threshold is different—but most people appreciate having a balanced portfolio of CDs and high-yield savings accounts with stock holdings. However, a too-conservative portfolio may not earn enough to outpace inflation, while a too-aggressive portfolio might leave you vulnerable to sudden market drops.

There are a few different ways to approach this. One of the most popular ones is the "glide path" strategy.1 Subtract your age from 100, and that is the proportion of assets you should have in stocks. So, for example, a 40-year-old would want at least 60% of their portfolio in stocks; a 70-year-old would want no more than 30% of their portfolio in stocks. The remainder of the portfolio's allocations might be to bonds, CDs, money-market accounts, or other assets.

Planning Withdrawals from Your Accounts

Once you become a certain age, you are subject to the required minimum distributions (RMDs).2 These are annual minimum distributions you must take from a traditional individual retirement account (IRA) and 401(k) plans. The Secure Act 2.0 increases the age that RMDs begin to age 73 for individuals who turn 72 on or after January 1, 2023. Also, a person who is 72 in 2023 is not required to take an RMD for 2023. Because RMDs increase your taxable income, many approaching 73 might benefit from working with a financial professional to manage their tax liability or reallocate withdrawals into other accounts.

But before RMDs become an issue, you may still need to make regular cash withdrawals from your retirement accounts. Some accomplish this by withdrawing a flat 3% of their initial balance each year, adjusting for inflation. Depending on the investments in the portfolio, these modest withdrawals may maintain or permit your portfolio to grow from year to year.

Whatever system you choose, it is important to be consistent. However, if a particular method is not working for you, switching to something that does is fine. A financial professional may help you evaluate where you are, discuss your goals and expectations, and design a plan to help manage resources.

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, Certified Retirement Counselor (CRC) 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.

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Miguel Gonzalez, MBA, AIF®, CPFA®, PPC®, CRC®

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