How to Fill the Hole in Your Retirement Plan
It’s not impossible, but it does require a level head and planning.
Bloomberg, April 16, 2020
You have been diligently working, saving and investing for retirement. You put in 40 or even 60 hours a week for almost 50 years. At long last, you get to kick back, play bridge, golf, fish, whatever pastimes you enjoy. You no longer have to trudge to the office or answer to the boss.
Then the pandemic hit: The economy starts tanking, a plunging stock market wipes out as much as a third of the value of your stock holdings and bond yields disappear. Now what?
The good news is you have options. Start with these five things and your odds go up for a secure retirement:
No. 1. Develop situational awareness
No. 2. Have a “decumulation” strategy
No. 3. Understand risks of fixed income:
No. 4. Reduce risk, cost and concentration in equities
No. 5. Pivot from saving to spending