An investment portfolio can be vital in helping you retire early and with confidence. But how far can it spread, and what is important in supporting it?
Even in cases where all indicators say your property is steadily improving, this won’t be smooth forever, as the law of averages is likely to come into play at some point. So it is important to regularly re-evaluate all options.
Bright Wealth Management can provide advice on which parts of your portfolio may need to be adjusted, and which parts may make further investment.
“We want to keep things under control, make sure your risk is being managed appropriately,” said host Mike Bauer. The Bright Wealth Management Show. “And the goal is not to chase performance. When you retire, it’s not just about the average returns, but it turns into the sequence of returns that is much more important.
“When are you making this money? … How are you avoiding those off-the-cliff moments? How do we lock in some of the best returns you can make? And that’s really keeping your risk aligned with your retirement plan.”
How can people protect their retirement plans from market volatility?
Matt Dages, president and founder of Bright Wealth Management, said there are “a lot of broken aspects with that retirement system” when it comes to things like Social Security and its long-term viability.
And although many people are working to change aspects of the system, it most likely will not change more than once or twice each generation. Dages emphasized planning for the reality of the current situation and adjusting as necessary.
“Let’s look at today’s tax rates, and we’re going to build on today’s tax rates,” Dages said. “I’m not going to speculate that they’re going to be higher. Let’s just say how they are today and speculate on whether they’ll always be like that.
“And we can make changes to what happens if that happens or what happens if the market crashes and what if taxes are changed? Then we can create a true value foundation for a financial plan.”
The New York Mets and retired player Bobby Bonilla are a fun example of the stable retirement principle of making sure money is waiting for you after you close the book on a job or career.
Because Bonilla was bought out of his contract for $6 million, which was to be paid over 25 years at an 8% interest rate, he has received $1.2 million each July 1 since 2011 and will continue to do so until 2035.
Although it’s hard to rely on the same type of situation for everyday people who weren’t professional athletes, it’s a good representation of preparation for converting assets in savings, retirement IRAs or 401(k)s into regular sources of income.
Anyone who wants to hear what the Bright Wealth Management team can do for them can claim free written financial plan online Or by calling 480-866-0044.
The Bright Wealth Management Show with Matt Dages airs Saturdays from 1pm to 2pm and Sundays from 3pm to 4pm. KTAR News 92.3 FM.