Align performance and protection needs
Investors face a unique challenge – how to create greater growth opportunities without taking on significant risk – when planning for retirement. It’s important to evaluate how investments are aligned to needs across an entire retirement portfolio.
Risks to consider
- Extended bull market and the potential for a major downturn
- The impact of early losses on future retirement income
- Rising interest rates negatively impacting future bond values
- Missed growth opportunities by remaining uninvested
Market changes can be sudden and severe
Since 2009, U.S. equities have experienced one of the longest sustained bull markets in history, which may have caused investors to forget about the severity of the last market crash. It is important to consider how a loss of 30% or more would impact a retirement plan.