investment tips for retirees

Did you know that investing is just as important during retirement as it is beforehand? We’ve discussed a lot of wealth accumulation strategies for those still in the 9-to-5 routine; however, if you want to make your savings work for you during your golden years, you’ll need to think about how to preserve that nest egg in retirement.

Without a pension, and with the average monthly Social Security retirement benefit hovering around $1,300 (https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/), you’ll want to make sure your portfolio performs so that you’re comfortable and financially confident. Just how long will you be drawing on your nest egg? At age 65, you’re most likely looking at about 20 years. At the current rate of inflation, your savings will potentially be cut by over half during that time. So, continued investing really is in your best interest.

For the short term, bonds, CDs, money market accounts or more conservative investments are options to consider. Despite the meager returns, you’ll want to keep your short-term assets close at hand (those you’ll be drawing on in the next 3-5 years) as they are less likely to be impacted by significant market fluctuations. Any long-term assets you have you should consider being diversified and invested in stocks over longer periods. This helps to give you a hedge against inflation and the opportunity to ensure your portfolio is still working for you over a longer timeframe.

For other ways to help you maintain and preserve your portfolio in retirement, it always helps to have an investment advisor to guide you through any significant financial decisions. If you don’t have a one, visit mooneylyons.com for more information about how to maintain a steady stream of income during your golden years.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Stock investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

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