Your Portfolio Can’t Afford To Retire At 65

dog in hammockMany people have the mistaken idea that their portfolio should “retire” when they do.

They assume that, once they hit that magic age of 65, they can shift into “coast” mode, picking up some income along the way but no longer worrying about growth.

Nothing could be further from the truth.

Nowadays, retirements are lasting 30 years or longer. Growth is just another word for keeping up with taxes and rising prices.

When you retire, your portfolio is only starting to earn its keep.

“Roughly half of your total lifetime investment return comes from earnings on your savings after you retire and start withdrawing money,” says Don Ezra, retirement wealth consultant and co-chair of Global Consulting at Russell Investments.

The Takeaway: When you retire and stop earning a steady salary, it is true that you may want to scale back your stocks to reduce your level of risk. However, with thirty years or more of living ahead of you, you still need to be focused on long-term growth.




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!


No comments yet.

Leave a Reply