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How to Retire with Money Confidence
4 steps to market-proof your retirement
People often underestimate the financial implications that timing can have on retirement. Consider this scenario: You retire confidently with $1 million, but immediately get hit with a huge stock-market decline.
“A major mistake I see people make is to assume that their investment returns will be average every year of retirement,” says Daniel M. Keady, CFP®, chief financial planning strategist at TIAA. “Retire when the market is up and it can bolster your portfolio for the years ahead. But if you retire in a year when the market is down, a fixed withdrawal plan may eventually come up short and you can run out of money in retirement.”
A market downturn around the time of retirement is a serious risk that can greatly affect your quality of life and hard-earned retirement.
And while it is impossible to guarantee you retire in a strong economic market, there are steps you can take to help protect yourself and your financial future, regardless of what happens with the market.
Keady offers four tips for protecting yourself against a market downturn in…
