- • Depending on where you are in the lifecycle, you likely will be better served managing savings or managing spending than managing the volatility of returns
- • Over a 30-year retirement, changes in interest rates and inflation can cause wide swings in the cost of retirement – the ever-changing present value of all future expenses
- • Only after aligning the portfolio so that the Floor covers expected future expenses while hedging interest rate and inflation risk do we look to the market for Upside
The Brexit vote and Friday’s and Monday’s market reaction dominated the news this week, and presented the opportunity to consider why these kinds of market gyrations are relatively unimportant to retirement planning. In fact, market gyrations may be relatively unimportant even to young people a long way from retirement as well.
This may seem way off-base since the commonly accepted view, and the historic message of the financial services industry, is that maximizing returns for growth is the purpose of investing…(click here to continue reading at SeekingAlpha.com)
Along with posting here and on www.RMAP-Planner.com, I write about retirement planning and retirement income on Seeking Alpha.com.