How To Maintain Post-Retirement Asset Allocation Portfolio

So you worked really hard, saved diligently for your retirement, and it’s time you want to enjoy the life you have been envisioning along the way. Great! But before you do that, do you have a strategy in place for retirement income—strategy that can weather inflation, market changes, and unexpected expenses?

In order for you to better achieve your retirement income goals, it is important to determine the necessary actions and decisions to be made to properly manage assets and implement a savings strategy. There is always a conflict between the need for growth to hedge inflation over the retirement period and the need for security. Because inflation and interest rates are so closely related and have a great influence over each other, a zero-risk retirement asset allocation portfolio will slowly reduce the value of the saved money over the life of the portfolio, even with the modest withdrawals. But, zero risk portfolios generally don’t meet any realistic economic goals. An equity-only portfolio, on the other hand, does have high expected returns but there is a risk of self-liquidation if withdrawals are continued during down markets. Keeping a balance between the two strategies is arguably the best strategy to maintain a good asset allocation portfolio after retirement.

The portfolio should balance the requirements of liberal income with enough liquidity to withstand down markets. You can start by choosing a sustainable withdrawal rate that can allow the portfolio to grow over time. For example, your 40% investment can be in bonds and rest in equity. 40% asset allocation to short-term, high-quality bonds in a down market can support distributions for a significant amount of time before equity needs to be liquidated. If the equity shares get appreciated, distributions can be made by removing shares and using the surplus for Rebalancing.

Need top quality assistance regarding retirement investment allocation? There are some of the most reputable wealth management financial planning firms out there, such as Capital Choice Advisors in Florida with tons of experience in the industry, which help their clients in defining strategies for maintaining a good asset allocation portfolio post-retirement, and manage their wealth with purpose. You can partner with them to make a strategy that can work best for the achievement of your retirement income goals. Partnering with a wealth management planning advisor in Florida does not only allow you to free yourself from the burden of going into the details of asset allocation, but you are also able to keep your complete focus on what you actually like to do.

Author’s Bio – The author is an online blogger. This article is about how to maintain a asset allocation portfolio post-retirement