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How To Manage (Early) Retirement

beebee
edited October 6 in Other Investing
From the Article:
Here are just some of the risks you have to contend with in retirement:

Longevity risk (running out of money)
Inflation risk (seeing a lower standard of living)
Market risk (bear markets)
Interest rate risk (fluctuations in yield or outright bond losses like we saw in 2022)
Sequence of return risk (you get poor returns at the outset of retirement)

And those are just portfolio management-related risks. You also have to contend with health risks, unforeseen expenses, family issues and life getting in the way of your best-laid plans.

Your two best forms of risk management in retirement are diversification and flexibility with your plan.

Every strategy comes with trade-offs. Unfortunately, there is no investment panacea that offers 100% certainty during retirement.

We tackled this question on the latest edition of Ask the Compound:
Article:
planning-for-early-retirement

Ask the Compound:


Comments

  • MikeMMikeM
    Early retirement passed me by years ago:) At 70, I still work 2-3 days a week. But alas, that ends at the end of this year.
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