Market volatility Archives - Jerry Golden on Retirement

Choppy Market Impacting Your Retirement Income Plan?

June 11, 2022 By Jerry Golden in Market volatility Tags: Income annuities, market volatility, retirement income, stable retirement

Find calmer seas with a retirement plan that includes safe income and eliminates the sour stomach that comes with market corrections.

In response to the wild market swings caused by inflation and Russia’s attack on Ukraine, most investment advisers are publishing articles about staying the course during volatile times. I’ve found one problem with these suggestions, particularly when it comes to investors near or in retirement: The advice is focused on your investment allocation, when your own focus most likely will be on your income, now and in the future. You don’t want a small — or worse yet, a large — market correction to wipe out your plans for income along with what you want to spend it on.

So, my question is: How much of your current and future retirement income should be dependent on the stock market — no matter whether it is heading up or down at any given point?

Answer: Design a plan for retirement income and you’ll find your safe harbor.

Fed is Raising Interest Rates. How do Retirees Benefit?

March 23, 2022 By Jerry Golden in Market volatility Tags: Fed interest hikes, Income annuities, retirement income

Some sectors of the population may feel the pain of interest rate hikes, while current retirees, and those near retirement, could actually benefit.

Potential homebuyers frowned at the Fed’s mid-March quarter-point rate hike because they can expect mortgage rates to continue to climb steadily, as they have since January. Freddie Mac’s weekly research bulletin shows that between Jan. 20 and March 24, rates for 30-year mortgages increased more than 1.1 percentage points. A review by the Mortgage Bankers Association revealed that the higher rates are starting to dampen home-buying, with purchases declining by 6% week over week. We have to wait to see whether slowing sales affect how the Fed adjusts its rates.

On the other hand, many retirees are smiling as interest rates creep up. That’s because if a portion of your income is coming from fixed income investments, you can see those yields rise. And one group of retirees could be particularly happy: those who are planning to include annuity payments as one of their sources of income.

Your emotions — and retirement plan — can rise even as markets fall

October 30, 2018 By Jerry Golden in Annuity, Market volatility Tags: bonds, downturn, protect investment, stock market, stocks, volatile market

After the recent stock market volatility, some advisors said investors should take a deep breath.

Or as one pundit said, “Don’t worry about market jitters, just get a hobby.”

On the other hand, I think it’s the absolute right time to reconsider the standard advice you get when the market takes back all of the “gains” you were counting on.

Let’s get back to basics: If you’re a Baby Boomer or just considering retiring in the next five years, why do you have investments in the first place?

To generate cash flow to live on when you’re retired?
To have a resource to draw on in case of unexpected costs?
To leave a legacy for your family or favorite charity?

For each of these objectives, how should your plan respond to market “corrections”?

Cash Flow

Have most of your cash flow coming from safe income, so you needn’t take steps to cut your losses when markets tumble.

Unexpected Needs

Make sure a portion of your investments are in short-term fixed-income funds, which will be little affected by market jitters.

Legacy

Adopt the philosophy that the beneficiaries of your legacy can take the long view. That allows you, and them, to ride out the market.

I believe what’s needed is neither a deep breath nor a new hobby — but a new retirement income plan. One that is less dependent on the market, generates more income to live on, creates emergency funds and leaves a legacy.

One silver lining is that as interest rates increase, causing some of the market downturn, the guaranteed lifetime income you can purchase through income annuities has improved. We suggest you go get a free no-obligation quote at Go2Income. Once you get your first quote, we’ll automatically update it for you on a regular basis.

Are you ready to talk about how to create safe, guaranteed income for your retirement? Write to me at Ask Jerry and I will answer you personally.