During your working years, you will utilize more growth-oriented financial strategies because your goal is to accumulate and grow your savings as much as possible. Since retirement is still decades away, you have the time to ride out a potential market downturn. But as you near retirement and get ready to transition into the distribution stage of life, you lose the luxury of time.
If you’re still investing for growth as retirement nears and another major market correction occurs, you could be forced to sell increasingly larger shares of your investments to generate the income you need. Do this too many times and you run the risk of cannibalizing your savings.
That’s why, as you approach retirement, you should work with a financial advisor who understands the best ways to help preserve your principal and turn your savings into a renewable source of steady income.
In our initial meeting with you, we will create a financial risk management plan to help ensure that the level of risk you are exposed to is appropriate for your current stage in life. After sitting down to get to know you, we can help create effective risk management and asset preservation strategies appropriate for your goals and situation.
