What’s Your Portfolio Risk?
Have you ever stopped to think what would happen to your current financial portfolio if we experienced another detrimental economic event, such as the market correction in 2008? Do you know how much money you could lose? If you are retired, or looking to retire, you most likely cannot afford to lose 30% or 40% of your portfolio, since you most likely are no longer contributing to these funds and therefore, do not have a plan to replace your lost income. One thing people don’t always realize is how losses have a greater impact on your portfolio than gains. This means, it is extremely important to have a well-built portfolio that will safe guard your assets and allow you to live comfortably through your retirement years.
People come into our office all the time, who have spent their life saving and investing in order to grow and accumulate their retirement savings but are not protected against potential economic events. There are many risk factors to consider, such as rising interest rates and the impact it has on fixed-income portfolios, the baby boom bust fear of boomers pulling money out of the market and causing a stock bust or even the potential of undergoing another market correction. Recently, we stress tested a $1 million portfolio and found that in past market crashes, the worst case scenario was losing 31% of their assets. That is over $300,000 of savings that would be lost!
Do you think it’s time to have a stress test done on your portfolio? Here at Cornerstone Retirement Group, we have the tools and resources available to evaluate your current risk exposure. Give us a call today (775) 853-9033 and talk to a retirement planning specialist about scheduling a stress test on your portfolio.