Retired Investors Struggle With Rising Stocks, Low Rates

wall street journal 2017-03-08 chartIf you missed it, check out today’s article in The Wall Street Journal (“Stocks Have Tripled Since Crisis, but Low Rates Are Still Squeezing Savers”) addressing the dilemma of retired investors struggling with rising stock prices (and rising market risk) and low interest rates.

Stingy yields on bonds and other “safe” investments are driving these investors further than they would like into the lucrative but potentially volatile stock market.

The article underlines the importance – and difficulty – of finding the right asset allocation, one that can address an investor’s need for reliable income and investment returns, without running out of money too early or courting far too much investment risk.

Using an experienced financial advisor can help you find that right path between too little return, in the one hand, and too much risk, on the other.

The article points out, as well, that lower and more uncertain investment returns inevitably require future retirees to set aside more money for the future (see Wall Street Journal graphic above).

While investment returns, and a proper asset allocation, are critical, the first and most important step is getting your savings dollars into your plan. A good advisor can help you determine the ideal amount of funding and keep you on the right path.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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