Do You Have an Exit Stategy?
The Dow Jones briefly hit 16,000 for the first time ever this Monday. As we have discussed in previous posts, many credit some of the rise in the markets to the Federal Reserve's stimulus programs. In the recent months, investors watched, waiting to see how much longer the fed will keep this program going.
And as fantastic it is that the Dow Jones hit another milestone, don't forget the lessons you learned in 2008 when $2 Trillion of American's retirement savings were wiped out in just 15 months!
A recent article from Financial Planning Magazine, one of the leading publications in the financial industry, discussed: Do your Clients need an Exit Strategy?
If you are within 5-10 years of retirement, or are already retired, and need some of the money you have invested in the markets for income; experiencing a loss in the markets could completely transform your live savings and possibly your lifestyle in retirement.
This article addressed three portfolio enemies that should be addressed in any financial plan: Inflation, Taxes, and Bear Markets. All three of these things are extremely important to plan for in retirement but as the article goes on to say the most significant threat to retirees and those soon to be retired is a market correction.
Do you have an exit strategy? Will you need income from your investments? If so, how much? Can you afford to experience a loss and the years it could take to recoup those loses?
If you are nearing retirement, or already retired, and you feel it's time to put a plan in place, call us at (775) 853-9033 to speak with a Retirement Planning Specialist.