Retirement Read Time: 3 min

Does Your Portfolio Fit Your Retirement Lifestyle?

Most portfolios are constructed based on an individual's investment objective, risk tolerance, and time horizon.

Using these inputs and sophisticated portfolio-optimization calculations, most investors can feel confident that they own a well-diversified portfolio, appropriately positioned to pursue their long-term goals.1

However, as a retiree, how you choose to live in retirement may be an additional factor to consider when building your portfolio.

Starting a Business?

Using retirement funds to start a business entails significant risk. If you choose this path, you may want to consider reducing the risk level of your investment portfolio to help compensate for the risk you're assuming with a new business venture.

Since a new business is unlikely to generate income right away, you may want to construct your portfolio with an income orientation in order to provide you with current income until the business can begin turning a profit.

Traveling for Extended Periods of Time?

There are a number of good reasons to consider using a professional money manager for your retirement savings. Add a new one. If you are considering extended travel that may keep you disconnected from current events (even modern communication), investing in a portfolio of individual securities that requires constant attention may not be an ideal approach. For this lifestyle, professional management may suit your retirement best.2

Rethink Retirement Income?

Market volatility can undermine your retirement-income strategy. While it may come at the expense of some opportunity cost, there are products and strategies that may protect you from drawing down on savings when your portfolio's value is falling—a major cause of failed income approaches.

1. Diversification and portfolio optimization calculations are approaches to help manage investment risk. They do not eliminate the risk of loss if security prices decline.
2. Keep in mind that the return and principal value of security prices will fluctuate as market conditions change. And securities, when sold, may be worth more or less than their original cost. Past performance does not guarantee future results. Individuals cannot invest directly in an index.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

Capital Gains Tax When Selling Your Home

Capital Gains Tax When Selling Your Home

If your clients are buying or selling a home, use this to help them determine if they qualify for capital gains taxes.

Federal Income Tax

Federal Income Tax

Use this calculator to estimate your income tax liability along with average and marginal tax rates.

What Is My Life Expectancy?

What Is My Life Expectancy?

Estimate how many years you may need retirement assets or how long to provide income to a surviving spouse or children.

 

Have A Question About This Topic?







Thank you! Oops!

What Is a Roth 401(k)?

Roth 401(k) plans combine features of traditional 401(k) plans with those of a Roth IRA.

Social Security: The 64,000 Dollar Question

One of the most common questions people ask about Social Security is when they should start taking benefits.

Earnings for All Seasons

Earnings season can move markets. What is it and why is it important?

View all articles

Capital Gains Tax Estimator

Use this calculator to estimate your capital gains tax.

Contributing to an IRA?

Determine if you are eligible to contribute to a traditional or Roth IRA.

Annuity Comparison

This calculator compares a hypothetical fixed annuity with an account where the interest is taxed each year.

View all calculators

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

Managing Your Lifestyle

Using smart management to get more of what you want and free up assets to invest.

5 Smart Investing Strategies

There are some smart strategies that may help you pursue your investment objectives

View all presentations

Are Alternative Investments Right for You?

With alternative investments, it’s critical to sort through the complexity.

An Arm and a Leg

A visit to the hospital can be painful, for both your body and your wallet. Don’t let it be more painful than it has to be.

Surprises

Making the most of surprises is a great reason to work with us.

View all videos