And no, this is not a pitch about annuities. Although I believe that fixed annuities can offer that safety net, they may not be appropriate for everyone. So what's left, especially if you want to be in the market? A stop-loss strategy? No one has time for that, and those don't protect your gains. What about a trailing stop-loss? Sure you protect some of the upside, but they still require diligent maintenance and renewal.
Back to the safety net. What if you could place that safety net under your investments? What if you could know your worst-case scenario at all times? What if you had the confidence to actually be present in your retirement—enjoy spending time with your grandchildren, taking the annual cruise, getting your golf game back—without worrying about the market?
Again, most of us would opt for a safety net if we were walking across two buildings. Likewise, most of us should opt for safety nets to help secure our portfolio against the headwinds and unpredictability of the market. Seek out a qualified financial professional to see what options exist to address the "what ifs" above. If they don't have answers, keep seeking.
Who's on your team? Who's helping you calculate the risks your portfolio may, and likely will, encounter? Who's helping you understand your risk tolerance and showing you how your portfolio is (or most likely is not) in line with your personal level of risk? Who's helping your formulate a solid financial plan to give you the confidence you need as you enter your retirement years? Who's sitting down with you and reviewing your accounts and making adjustments as your needs and desires change?
You owe it to yourself to explore every option that will give you the best chance to help secure the retirement of your dreams. You owe it to your hard-earned retirement assets to have some safety nets in place.
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