“Cessation of work is not accompanied by cessation of expenses.”
We don’t know what stock markets will do when we plan to retire.
In his article, The 4 Year Rule for Retirement Spending, Ben Carlson explains an interesting strategy for investors approaching retirement:
The Retirement Buffer Strategy:
- Setting aside funds to pay the bills for a number of years
- Reduce the pressure to sell stocks at the worst possible times
- Buy time for your investments to recover
In addition, our “pension-style” portfolios are designed to reduce volatility which also helps to smooth out portfolio returns.
Call us to discuss these retirement strategies because some market corrections have lasted a few years and even the “average” market correction (see below) lasts 15 months:
“It is better to have a permanent income than to be fascinating.”
~ Oscar Wilde
