How Are You Dealing With Market Risk?

As if it isn’t hard enough to plan for retirement, a whole bunch of other things to worry about pop up almost daily. The market is unpredictable, as is the world and events that affect the market like the pandemic and the war in Ukraine. So, how are you dealing with market risk? Many people take a “set it and forget it” approach to their retirement plan. That may have worked 30 years ago, but it doesn’t work now.

As you age and depending on your financial situation, you may want to consider taking certain steps to prepare your retirement plan for volatility in the market. Feelings of uncertainty surrounding the market are very common because we live in an ever-changing world where nothing stays static for very long. This state of constant change requires a more active role in managing your personal finances, and at the very least having regularly scheduled financial reviews.

While there is no shortage of news and information, when it comes to market risk, there will always be an unknown factor. So, how do we mitigate the unknown? By taking control and staying informed, vigilant, and focused. It’s important for those at or nearing retirement to approach the market differently than they had earlier in their career. Focusing on the preservation of principal is key because as you age, you most likely cannot afford to suffer a double-digit loss in your retirement funds. You may not have the ability to make the money back and cover expenses, so now is the time to fine-tune your spending, saving, and expectations to best protect your retirement income.

If you have concerns about your exposure to market risk, then it may be a good time to schedule a complimentary, no obligation financial review. We do them regularly to help people better understand the current state of their finances and determine whether they’re still on track for retirement. It’s also a great time to do a risk assessment to see if your current portfolio allocation is in sync with your risk tolerance. Having confidence in your retirement plan will help you to stay focused and eliminate panic when market volatility strikes.

So, if you’re concerned about market risk, then take control by arming yourself with information. And remember, we’re always here to help guide you along the way. We’ll discuss how we can design a customized plan to help you achieve your retirement goals without taking unnecessary chances or risks.

**INFORMATION PROVIDED IS FROM SOURCES BELIEVED TO BE RELIABLE HOWEVER, WE CANNOT GUARANTEE OR REPRESENT THAT IT IS ACCURATE OR COMPLETE. NO STATEMENTS MADE SHALL CONSTITUTE ANY FINANCIAL, TAX, LEGAL, OR ACCOUNTING ADVICE. ANY HYPERLINKS PROVIDED ARE AS A COURTESY AND SHOULD NOT BE DEEMED AN ENDORSEMENT**

Securities and advisory services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/ SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA. RAA is not affiliated with Lone Beacon

Neither the named representative nor the named Broker/Dealer or Investment Advisor gives tax or legal advice.

Fixed index annuities are designed to meet long-term needs for retirement income. Early withdrawals may result in loss of principal and credited interest due to surrender charges. Distributions may be subject to ordinary income tax and, if taken prior to age 59 ½, an additional 10% federal tax. An income rider or benefit (sometimes called Guaranteed Lifetime Withdrawal Benefits, or GLWB) is an additional feature available with some annuities and generally optional and come with additional cost. Income benefits are designed to provide income options above and beyond the standard annuitization or free withdrawal features in annuities. All contract gains beyond the CAP rate are surrendered to the insurance company to pay for the expense of the product.

The views expressed are not necessarily the opinion of Royal Alliance Associates Inc, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Individual circumstances vary. Investing is subject to risks including loss of principal invested. No strategy can assure a profit against loss.