As mentioned, you will want to consider a shift to a more risk-adverse portfolio as you approach retirement. This may involve taking your accumulated wealth now and transferring them to more conservative options. This helps to maximize your retirement pot, protecting it at the tail-end of your peak earning potential. The stock markets have been performing well for some time. Economic history tells us that the markets are cyclical and that they will continue to drop before beginning another
period of growth.
It is important to remember that if you lock in your stock gains outside of a tax-advantaged account, you will generate taxable income. Furthermore, if you sell stocks within a year of purchasing them, any gains will be taxed at your highest personal tax rate. There are ways to protect yourself, such as holding onto stocks for a least a year or purchasing PUTs or setting a trailing stop order. But those are outside of this discussion, please note that we recommend working with qualified professionals for tax and financial advice on any such situations.
Whatever you choose to do to
lock in your stock gains and to
protect your retirement nest
egg and financial lifestyle. If
you’re planning to retire at 65,
you may be able to enjoy 30 years
or even more of retirement. But
you still need to make informed
decisions to protect your wealth
and ensure you are financially
prepared for retirement.
For more financial lifestyle advice
contact us. 312-952-8040/Cell,
312-243-3907/Office,
[email protected], www.1stcig.com