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Planning for retirement is never a “set it and forget it” activity. There are unexpected disasters, market drops, and changing laws that invariably cause retirees to reevaluate their plans of action. Recently, market volatility and the Federal Reserve’s decision to cut interest rates may have you wondering how to respond. Here’s what to consider when it comes to low interest rates, market volatility, and your retirement.

What is Your Risk Tolerance?

If the recent coronavirus market correction caused you to panic, you might want to rethink your asset allocation or investing strategy. We can help you assess your risk tolerance and see if your portfolio needs adjustments. Remember that this likely won’t be the last period of market volatility you see throughout your retirement, and it can help to plan ahead of time. While “timing the market” is a popular investing theory, it doesn’t account for market drops caused by unpredictable events like the outbreak of a disease, natural disaster, or political instability.

How Do Low Interest Rates Affect You?

Low interest rates can be great for people buying a home or taking out student loans, but what about those nearing or in retirement? When lower-risk investments like CDs and bonds offer lower returns, it can make retirement planning more complicated. The Federal Reserve recently cut interest rates to near zero. While this may help an economy struggling with the coronavirus, it may tell a more complicated story for retirees.

Where Will Your Retirement Income Come From?

It’s important to know where your money will come from once you or your spouse stop getting a paycheck. Start by figuring out how much you will get from Social Security. Social Security can offer lifetime guaranteed income, which is why having a plan for maximizing your benefit is so important. From there, you can figure out how to turn what you’ve saved into retirement income. You may want to include other lifetime income sources in your retirement income plan, and a financial advisor can explain your options. An advisor can also help you figure out how to draw on investment returns to create a comprehensive retirement income strategy.

If you’re looking to revise your retirement plan, we can help. Market volatility, low interest rates, and the overall uncertainty that comes with planning for retirement can cause panic. But there are ways for your financial plan to respond and prepare for future market drops. We offer complimentary financial reviews so we can meet to discuss your risk tolerance, retirement income plan, and unique financial planning needs.

The content presented is for informational purposes only and is not intended as offering financial, tax, or legal advice, and should not be considered a solicitation for the purchase or sale of any security. Some of the informational content presented was prepared and provided by tMedia, LLC, while other content presented may be from outside sources believed to be providing accurate information. Regardless of source no representations or warranties as to the completeness or accuracy of any information presented is implied. tMedia, LLC is not affiliated with the Advisor, Advisor’s RIA, Broker-Dealer, or any state or SEC registered investment advisory firm. Before making any decisions you should consult a tax or legal professional to discuss your personal situation.Investment Advisory Services are offered through SHP Wealth Management LLC., an SEC registered investment advisor. 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.
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