Instead of just hoping the stock market stays steady, you can use a combination of your housing wealth and lifetime annuities to help ensure that an average of three-quarters of your retirement income is not subject to market risk.
Editor’s note: This is the final article in a five-part series about all-asset retirement planning that covers such topics as using lifetime annuities and housing wealth, making the most of tax benefits, and managing investment portfolio risk. See below for links to the first four articles.
In writing this series, we saved the topic of managing investment risks in a retirement plan for last. Not because it’s either least or most important, but rather, it’s an area where things could get complicated, particularly if it got into security selection or hedging strategies that go beyond our retiree’s — and even our — expertise.
The reality is we have reduced the investment risk challenge through all-asset planning even before we get to this point.
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