Retirement Risk
Market Risk
It feels good when the market is up. But when it goes down, not so much; especially when you lose 40% or more of your retirement savings in the blink of an eye. That’s not a pebble. That’s a boulder. Our Market Risk Report can help you avoid it.
Here's the Danger
The amount of risk you take getting to retirement, probably shouldn't be the same amount of risk you take in retirement. The trouble is that those pre-retirement investments were designed for growth. In retirement, the focus often needs to shift to protection. A large loss is dangerous for retirees because there might not be enough time to gain those losses back.
Dotcom Bubble Burst, 2000-2001
Nasdaq lost 78% of its value.
Financial Crisis, 2007-2009
S&P fell 57% amid housing collapse.
*Source: Investopedia https://www.investopedia.com/timeline-of-stock-market-crashes-5217820
Learn More About Market Risk
How the Roadmap Helps Solve This Risk
Our Market Risk Report Shows the Cost of Bad Timing
Not all market risk is created equal. The year you retire can make or break your nest egg. The Market Risk Report stress-tests your portfolio against downturns like 2000 and 2008 to show the real impact timing can have on your savings. With this insight, we can adjust your investments to reduce risk and help protect your retirement income.
Here's how the same $1,000,000 portfolio plays out, depending on timing.
Assumptions: $1,000,000 starting portfolio, 5% withdrawal ($50,000) at the start of each year, withdrawals rise 3%/yr, invested 100% in the S&P 500 total returns (dividends reinvested).
Returns: Slickcharts – S&P 500 Total Returns by Year: 2007 +5.49%, 2008 −37.00%, 2009 +26.46%, 2010 +15.06%, 2011 +2.11%, 2012 +16.00%, 2013 +32.39%
Hypothetical illustration for education only. Excludes fees, taxes, and trading costs. Past performance is not indicative of future results.
Are You Ready to Retire?
Learn about 4 of the large risks to retirement and how you can prepare.
Market Risk Resources
Your Financial Plan Expired at Retirement. But How?
Many people don’t realize that when they’re nearing or in retirement it’s time for a new plan. The focus is no longer grow, grow, grow, but rather to protect what you’ve saved.
How to Determine the Right Amount of Risk in Your Retirement
So how do you determine the right amount of risk in retirement? Consider these three important questions.
How to Get a Market Risk Report
The Market Risk Report is part of our Roadmap for Retirement, your comprehensive plan for helping protect your retirement. Your personalized Roadmap for RetirementSM contains all the tools you need to minimize what could be the greatest risks to your retirement, including the Market Risk Report, a Long-Term Care Plan to help protect against long-term care costs, an IRA Tax Plan to help lower your overall tax burden, and a Fee Analysis to identify how much you’re paying in investment and advisor fees.