Stock Market Losses: What can you do now?
What should you be doing NOW to mitigate your losses and provide growth when the market bounces back?
Nobody should have to panic about their portfolio during a dramatic downturn like we are seeing today. One way around it is for the pre-retiree or those just in retirement to set-up a strategy that will stand up against the worst economic downturns, while offering solid growth in up-markets. Doing so will avoid stress, concern and anxiety when markets get scary. At least your finances can be one less thing to worry about.
We teach retirement planning, and our network of retirement advisors help individuals nearing retirement and just recently retired create an efficient and sustainable income for life, including unique portfolios that mitigate risk in down markets and offer growth in up-markets.
In our classes and workshops, we discuss how stocks react in different market environments so students can understand the true risks and benefits stocks have in a retirement portfolio. In light of the long bull market we’ve experienced, we see that this lesson sometimes falls upon deaf ears. The market volatility we’re currently witnessing is a wake-up call for many.
Extensive investigation of academically researched strategies has been conducted by our team of advisor instructors. The main goal of these strategies is to protect a retiree from market volatility and the negative effect market volatility can have on a portfolio when taking income from the portfolio.
The research proves…
THE PORTFOLIO WITH THE LOWER VOLATILITY (risk) WILL LAST LONGER WHEN TAKING WITHDRAWALS, ALL OTHER FACTORS BEING EQUAL.
Many past students have heeded our caution and prudently reallocated their portfolio to what is called the Hybrid Income Portfolio (HIP). While many people are overly invested in the stock market, riding the wave of the surging bull market ever the since the end of the mortgage crisis of 2009, they now face a consequence for being too aggressive. Perhaps now is a reminder that being too heavily dependent on the performance of the stock and bond market can be a dangerous place for those nearing or already in retirement.
Contrary to popular Wall Street rhetoric, traditional stock and bond portfolios do not offer the risk protection necessary for pre-retirees and are inefficient against market losses. A Hybrid Income Portfolio strategy combining stocks and bonds, integrated with principal protected investments creates a much more efficient portfolio offering lower risk and higher growth potential than a traditional stock and bond portfolio.
Regardless of the economic situation, a properly balanced hybrid portfolio will create more protection and greater growth potential. Most importantly, this HIP strategy offers pre-retirees a much HIGHER DEGREE OF COMFORT through these tumultuous times…LOWER RISK with HIGHER POTENTIAL RETURNS.
This economic downturn will certainly be a wake-up call for some to understand the power of volatility and the impact it can have on your portfolio. It’s now more critical than ever if you’re five years or less from retirement or just retired, to take steps to re-position your portfolio and protect your nest egg.
You can schedule a 30 minute “Portfolio 2nd Opinion” today to find out the impact a Hybrid Income Portfolio could have on your retirement outcome. You have nothing to lose except stock market risk.