This week, Mike discusses whether or not a retiree should get out of the stock market. There are many concerns to think about, including:
- Do you have a pension plan?
- If you have an annuity, what issues should you consider?
- Could you possibly have a long-term care event before you pass?
- There are two different kinds of risk, and It is important to know what kind of risk you are talking about and how you handle both.
- Seen risk: volatility; being risk-averse or time to weather the next downturn (afraid of dying sooner)
- Unseen: inflation and the increasing cost of living (potential of living longer)
- Why is a diversified portfolio so important: like having investments in “time buckets”?
- People want to get to the point they don’t want to worry about money, but how much does that actually take? A lot has to do with how you view money and where you get your contentment.
- One of the biggest concerns seems to be health care: long term care events and how to pay for them.
- If you invest too conservatively, you might have to reduce your standard of living so that you don’t outlive your money.
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