During the last market downturn, retirees who had all their assets in equities saw their nest egg shrink by almost 35% over a 12 month period. This is an absolute nightmare scenario for a retiree, and unfortunately, it was a reality for too many hard-working people.
Proper asset allocation is critical for a successful long-term financial strategy and it is especially important for retirees. As a general rule, it is unwise for a retired to have 100% of their assets in equities at any time. Figuring out what it looks like takes the personal investigation into each person’s risk tolerance and investment objectives.
During retirement, income needs can become pressing. Can you generate sufficient income without drawing down on your principal? What is the best way to generate income without taking excessive risks?
A financial advisor can help you figure out what level of risk is suitable for you. Even the best captains have an entire crew to help them run the ship. Your financial adviser is here to ensure you maintain a safe steady course, peering through the binoculars to scan the horizon for obstacles.