Leaving the working world behind requires a different mindset, especially when it comes to investing after retirement. Instead of focusing solely on building wealth, the priority shifts to managing how to live off your savings in both the short and long term. With the risk of running out of money being a major concern, it can feel overwhelming. However, there are strategies to help reduce risk and possibly even grow your portfolio during retirement. Read on for insights into extending the life of your nest egg through smart investing after retirement, plus an overview of the streamlined investment approach we utilize at Resolute Wealth Advisor.
Managing Market Risk in a Volatile Market
A smart investment strategy can go a long way in preparing for retirement. With a lot of time to weather the ups and downs of market conditions, leaning on investments with historically proven long-term returns makes sense before you retire.
When you’re in your prime earning years, you can afford to play that long game to your advantage, making the most of down markets. When you’re retired and you don’t have the same source of income, however, you don’t have the luxury of time or as much comfort rolling the dice and taking a loss.
It’s typical to shift to much safer investments post-retirement, ones like bonds that are more immune to sudden, sharp declines. And while no two retiree investors’ needs are identical, managing that market risk can help protect your finances against the unknown.
Managing Longevity Risk in Retirement
The average length of retirement for those leaving the workforce at age 65 is 19 years for women and 17 for men, but many people enjoy retirements that last two to three decades, making it prudent to plan past statistical life expectancies. Knowing you may need to rely on your investments for 20 or 30 years to come, it’s a good idea to consider some growth-oriented investments. This can help you combat cost of living increases and keep up with inflation so that you don’t outlive your income.
It’s all about how much you need, preservation of capital, and mitigating uncertainty. The key is to grow your investments enough to keep up your standard of living for the years to come and focus on low-risk opportunities.
Four Considerations for Investing After Retirement
When you’re focused on growing your nest egg, it may help you to begin with these four things in mind:
- Begin With Budget: A budget is always a good idea, no matter your stage in life. Understanding how and why you’re spending can help you plot an attainable course of action. Make sure to adjust your budget as necessary.
- Build in Flexibility: A budget is a helpful tool, but it doesn’t provide any guarantees. That’s because it’s impossible to predict your expenses with total precision. Build in some flexibility when planning the size and timing of your retirement withdrawals. As a bonus, doing so can also help you better manage your tax bill.
- Plan for Sufficient Liquidity: Sometimes, you may need funds on short notice, which makes it helpful to build sufficient liquidity into your portfolio. Some investors consider fixed-income investments or sell appreciated equity investments periodically.
- Navigate Portfolio Volatility: Every investor must navigate volatile markets. It’s easy to get caught in a cycle: taking distributions in down markets, liquidating investments at inopportune times and prices, and disrupting the entire long-term plan.
The good news is you don’t have to undertake a strategy for investing after retirement on your own. Working with a financial advisor you can trust means you’ll have professional guidance from a team that always works with your best interests in mind.
Putting a Little More YOU in YOUR Portfolio with Resolute Wealth Advisor
At Resolute, we are proud to offer a streamlined investment strategy that was designed with your needs in mind. We’ve made it possible for you to tailor an investment strategy that matches your unique goals, interests, and values.
Our enhanced investing offering includes:
- Factor-based investing with primary emphasis on Value, Momentum, and Quality (and minor emphasis on Size)
- Opportunities to invest in individual stocks and ETFs through Separately Managed Accounts
- Strategic Tax Management
- Values/Impact-based investment initiatives
- Opportunities for exposure to emerging innovations and digital assets
- Strategies for focusing on income by investing in dividend-focused stocks
We know that there is no one-size-fits-all approach to investing after retirement, but there are common strategies that can help to extend your retirement savings while mitigating risk.
Maximize Your Nest Egg with Strategic Investing After Retirement
The key to making your retirement as anxiety-free as possible is a smart investment strategy that’s customized to your financial and lifestyle goals. Creating a solid investment plan starts with knowing who you are as a person. Your comfort level with risk, knowledge of how you want to live, and plans for the future are the foundation for creating a portfolio that works for you. We can help you clarify your goals by asking the right questions – and answering yours, too.
At Resolute Wealth Advisor, your investment goals matter, and helping you achieve them is our utmost priority. With sophisticated tools and offerings, we hope to add more value to our clients’ portfolios –and to their lives, too. If you have questions about our investing offerings or how these opportunities might align with your portfolio needs, we would be happy to speak with you. Book your strategy session now and take a step forward into building the retirement of your dreams. We look forward to hearing from you!
