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.More