Most of the people who die on Mount Everest do so on their way down, not on their way up. Whether they make it to the top or not, it's on the way back down that they die.
Retirement is the same way.
No one runs out of money on their way to retirement when they are still working and saving. People can run out of money in retirement because they stop working, stop saving, and don’t have the proper strategies in placebo make the rest of their plan work.
But don’t bad markets kill retirement dreams? For some, they do. But they don’t have to. With the proper planning and strategies in place, a down market doesn’t have to affect how you live your life. Call it a market-downturn strategy. Call it an emergency fund. Call it the two-year cash reserve insurance plan for when the markets go haywire. It’s all in how you plan for these things. You know that markets are going to go up and down during retirement. So, make that part of your retirement plan.
It’s just like having proper coverage for your home or car. Would you ever decide to discontinue coverage on those assets because you didn’t think the chances of a home peril or car accident were going to occur anymore? Plan for what happens when things go right and prepare for what happens when things go wrong.
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Alex Bishop, CRPC®, MS, is a Private Wealth Advisor and Franchise Owner with Bishop Financial Partners, a private wealth advisory practice of Ameriprise Financial Services, LLC in Huntersville, NC. He specializes in fee-based financial planning and asset management strategies and has been in practice for 23 years. To contact him, https://www.ameripriseadvisors.com/alex.h.bishop or alex.h.hishop@ampf.com.
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