Many retirement savers have multiple accounts that are treated differently in the tax code and for estate planning purposes. Consequently, it often makes sense to invest the accounts independently or shift money from one to the other. Our investment recommendations for positioning each account is provided in consideration of these numerous factors. Our Free Resources includes taxation tables for different types of accounts.
Managing market risk EARLY in retirement is especially critical for the simple reason one might have decades of living expenses in front of them. The nightmare scenario is retiring just as a major market meltdown is beginning to unfold. Having your portfolio reduced by 30, 40 or even 50% in YEAR-1 can permanently impair your retirement. Because there is no way to predict the precise timing of these declines, retirees need a strategy to dampen the effects and manage the impact.
We utilize a variety of approaches to manage market risk including segmenting portfolios for risk, maximizing guaranteed income streams and adhering to empirical research on historically sustainable withdrawal rates.
Financial markets have been volatile throughout history. Although these swings tend to make investors nervous, they also present opportunities for tax savings. When managing an investment portfolio in conjunction with a retirement plan, we are always on the lookout for opportunities to capture tax losses (to lower your tax bill) or convert pre-tax investments to tax free.