Does it Matter When You Retire?
by Keith W. Ellis JR., Co-founder
Does it really matter when you retire?
It sure does.
If you retire when the economy is strong and the stock market is growing, you’re on “easy street.”
Your investments are growing and often you can pull money out to pay for retirement without even noticing it.
But if you retire during stock market volatility or a falling market, it’s an entirely different story.
This is called “sequence of returns risk.” And it could have devastating long-term financial consequences for your nest egg.
Here’s how it works…
Imagine you recently retired and the stock market is falling.
So, your investments have dropped with the market slide, right?
But you’re no longer earning a paycheck, and you need money to pay for your expenses in retirement.
So you have to sell some of your investments when they’re worth a lot less. And you have to keep doing that month after month after month to pay for retirement.
CNBC featured one example of this concept that showed a portfolio with a sequence of negative returns early on ran out of money in year 20, in comparison to a portfolio that experienced a sequence of positive returns early on and a year 20 still had a healthy balance.
To learn more about how you could navigate sequence of returns risk, contact us at (866) 746-2401 or ask@shpne.com.
The content of this advertisement was prepared by TRIAD Partners. The information presented is for educational purposes only and intended for a broad audience. The information does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk, and unless otherwise stated are not guaranteed. Be sure to first consult with a qualified financial advisor and or tax professional before implementing any strategy discussed herein. Hypothetical examples and illustrations are for example purposes only and individual results will vary. Insurance sales are offered through SHP Financial, LLC. These are separate entities, Matthew Chapman Peck, CFP®, CIMA®, Derek Louis Gregoire, and Keith Winslow Ellis Jr. are independent licensed insurance agents, and Owners/Partners of an insurance agency, SHP Financial, LLC. In addition, other supervised persons of SHP Wealth Management, LLC. are independent licensed insurance agents of SHP Financial, LLC. No statements made shall constitute tax, legal or accounting advice. You should consult your own legal or tax professional before investing. Both SHP Wealth Management, LLC. and SHP Financial, LLC. will offer clients advice and/or products from each entity. No client is under any obligation to purchase any insurance product. Offices in Westborough, Marlborough, Dartmouth, and Braintree are offices of convenience and only used for client meetings. SHP Financial utilizes third party marketing and public relation firms to assist in securing media appearances, for securing interviews, to provide suggested content for radio, for article placements, and other supporting services. SHP Financial has qualified for multiple awards through various contests — some of which were based off of employee/ employer surveys, community votes, and/or paid entries.
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