MARKET CORRECTIONS -
RETIRE SAFE, RETIRE HAPPY
WHY IS LOSS IN RETIREMENT SO BAD?
Saving for retirement is very different than spending in retirement. The ability to recover from loss and maintain your lifestyle is increasingly difficult
(see example on left image).
- "Rule #1 in retirement, do not lose any money. Rule #2, see Rule#1."
-Warren Buffett - Ideally you adapt to your new phase of life.
ARE YOU PREPARED FOR THE NEXT MARKET CORRECTION?
Employer sponsored retirement plans and some IRAs are designed around saving for retirement but may not be a great vehicle for providing peace of mind in retirement. Often, they are limited in investment options and require you to take all the risk. Your employer or the US government is not responsible for a payment in retirement to you like traditional pensions or social security, respectively.
The financial crisis of 2007–2008, also known as the global financial crisis, was a severe worldwide economic crisis. About $2.4 trillion was lost in retirement accounts in the final 2 quarters of 2008(Forbes).
WHAT HAS CHANGED IN YOUR LIFE BETWEEN THE 2008 CRASH AND TODAY?
In 2008, you had many working years ahead of you to save for retirement and recover from loss. Today, time is no longer on your side to save for retirement or recover from loss. Would you be able to withstand a 30% or more reduction in your retirement accounts today?
LEADING UP TO RETIREMENT, YOUR ASSETS SHOULD LOOK AS IF YOU ARE ALREADY RETIRED
The reason for this is 60% of people retire earlier than planned due to unforeseen circumstances (USA Today) and frequently you are taking all the risk in your retirement accounts. You must take control of your assets, so you don’t fall victim to a market crash as you transition into retirement! Do you know when the next correction will be?
Will it irreversibly affect your lifestyle in retirement?
MARKET CORRECTIONS SINCE 1980
| DATES OF S&P'S BIGGEST DECLINES | U.S. STOCKS |
|---|---|
| Black Monday | 8.25.87-12.4.87 | -33.5% |
| Gulf War | 7.16.90-10.11.90 | -19.9% |
| Asia Monetary Crisis | 7.17.98-8.31.98 | -19.8% |
| Tech Bubble | 3.27.00-10.9.02 | -49.0% |
| Financial Crisis | 10.9.07-3.9.09 | -56.8% |
| US Credit Downgrade | 3.10.11-10.3.11 | -19.0% |
| Trade War | 10.3.18-12.24.18 | -19.6% |
BY USING THE RETIRE SAFETY FIRST APPROACH
we can help alleviate market risk in your retirement accounts so you should be able to spend more time living your life to the fullest and rest easy knowing that your monthly expenses such as: housing, utilities, groceries, hobbies, and travel are covered. We appreciate how hard you worked to save for retirement. We take the time to discover what your goals and concerns are to help you achieve a safe and rewarding retirement. We want to help you enjoy the retirement you always imagined.
7 MISTAKES YOU CAN'T AFFORD TO MAKE WHEN TRANSITIONING INTO RETIREMENT
Now that you have made the effort to save, you do not want to jeopardize your future lifestyle by making avoidable mistakes.
Avantax affiliated financial professionals may only conduct business with residents of the states for which they are properly registered. Please note that not all the investments and services mentioned are available in every state. The Avantax family of companies exclusively provide investment products and services through its representatives.
Securities offered through Avantax Investment ServicesSM, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory ServicesSM. Insurance services offered through an Avantax affiliated insurance agency. 3200 Olympus Blvd, Suite 100, Dallas, TX 75019, 972-870-6000
Check the background of your financial professional on FINRA's BrokerCheck.
Although Avantax Wealth Management® does not provide tax or legal advice, or supervise tax, accounting, or legal services, Avantax representatives may offer these services through their independent outside business. This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
Content, links, and some material within this website may have been created by a third party for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth Management® or its subsidiaries. Avantax Wealth Management® is not responsible for and does not control, adopt, or endorse any content contained on any third-party website."