Moving from the work force into retirement can result in significant pressures on our money.  I mentioned a couple of weeks ago about a term called “Sequence of Returns” and how it can impact your retirement.

The attached article talks about adjusting your withdrawal rate when market returns turn negative.  The author’s suggestion, based on his research, is to temporarily reduce your withdrawals from anywhere between 10% to 20% until the portfolio has recovered so that you can go back to the original planned withdrawals.  My question would be, “What happens if you need every dime of your current withdrawal to live on?”  Wouldn’t a better idea be to have an alternative source of funds to take the full yearly withdrawal until your investment portfolio has fully recovered?

Part of our planning process, The Liberated Investor Advantage™, can take you from for a conventional approach to retirement to planning and building an enhanced approach where multiple sources of income become potentially available.  The article is worth reading if nothing more than to get all of us thinking about the stresses we have on our wealth.  Should you like to talk to me about this or any other topic, please call or email me and we can schedule a phone call or meeting.

I have no idea how the equity markets are going to react to last week’s news.  Impeaching a president is serious business and shouldn’t be taken lightly.  Shortly after the last presidential election, Jean & I were at a wine tasting dinner and were seated with 2 other couples that were clearly not happy about the results.  One of their comments was that we just need to get along.  I predicted the kumbaya moment wouldn’t last 2 weeks.  I overestimated.

Hope you have a super week!

Doug Alden

Link to article…

PS:  Always remember, investing in equity markets has risk and past performance is no guarantee of future results.

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