Investing Wisely in Your Retirement Years

Lesson 1: Investing Wisely in Your Retirement Years

As you enter retirement, your investment goals and strategies will likely shift. The focus typically moves from aggressive growth to preserving capital and generating income.

What You Should Know:

• Risk Tolerance Changes: With a shorter time horizon, significant investment losses can be more difficult to recover from. Your comfort level with market fluctuations is key in determining your asset allocation.

• Prioritizing Income and Access to Funds: You'll need reliable sources of income to cover living expenses. Investments that provide steady income streams, along with easily accessible funds for emergencies, become crucial.

• Understanding Different Account Types: You likely have a mix of retirement accounts (IRAs, 401(k)s) and taxable brokerage accounts. Understand the tax implications of withdrawals from each.

• The Impact of Inflation: Even in retirement, inflation can erode the purchasing power of your savings. Your investment strategy should aim to outpace inflation while managing risk.

• Seek Professional Guidance: Find resources specializing in retirement planning can help you assess your needs, determine an appropriate asset allocation, and create a sustainable withdrawal strategy.

Key Takeaway: Your retirement investing should prioritize capital preservation and income generation, aligned with your risk tolerance and time horizon. Regularly review and adjust your strategy as needed.

UNDER CONSTRUCTION, MORE TO COME.