A volatile market can make anyone nervous, but it can be especially nerve-wracking for retirees and soon-to-be retirees who are concerned about protecting their nest eggs for the long term. And one thing will always hold true: No one can predict the market’s ups and downs. Therefore, it’s important to create, no matter how positive or negative the stock market looks, a comprehensive retirement strategy that will help you survive a volatile market.
One of the best sources of guaranteed income comes from Social Security because the amount of money you get every month doesn’t change based on market performance. It’s important to maximize this benefit so that you can have as much income each month as possible. But, because Social Security alone will likely not be enough to cover all your expenses, you may have to look for other retirement income options to help supplement.
After your living expenses are covered, you can start planning for that extra income. There are many different investment options and ways to diversify your portfolio. Some people choose to use a systematic withdrawal strategy while others use Required Minimum Distributions to determine their added annual income. It’s always best to talk to a financial advisor to see what options might be best for your unique situation.
Now, if you’re not yet retired but are quickly approaching retirement age, you might want to protect yourself more from a market crash. If there is a gap between your retirement date and when you’ll start receiving Social Security, you’ll need to figure out where your income will come from during that time. If you have a pension, know how much you’ll receive each month and when it will start. If you don’t have a pension, consider how much monthly income you’ll need to cover your basic expenses.
We want to help you make smart financial decisions so that you are prepared, for whatever the stock market brings. We will work with you to create a strong financial plan – schedule your complimentary review and strengthen your financial plan.