Meta Description: Discover dividend strategies for market downturns and how to avoid running out of money in retirement. Learn about transitioning from saving to spending in retirement with proven strategies.

The latest episode of The Financial Hour tackles a critical issue facing retirees today: how to create income from retirement savings that lasts. Tom Dupree and Mike Johnson explore alternatives to annuities for retirement income while contrasting investment process vs momentum investing approaches. They explain why protecting retirement savings from market volatility becomes essential when transitioning from saving to spending in retirement. With tech stocks sliding and market volatility increasing, the Dupree Financial Group’s approach to dividend-producing assets offers dividend strategies for market downturns that can help you avoid running out of money in retirement.

Tom and Mike open with a market overview showing concerning trends for tech-heavy portfolios:

This divergence highlights the concentration risk many retirees face with tech-heavy index funds. The hosts explain why their clients’ portfolios are outperforming major indices during this market shift.

“We’ve been pounding the table, screaming and hollering about this for the last two years. What we’ve been pounding the table on is not a market call… it’s looking at valuations and the concentration of risk in everybody’s portfolios, retirement portfolios.”

Mike explains the fundamental difference between momentum-chasing and value-based approaches when moving from 401k to income-generating investments:

“The investment process for retirees, you have to look at risk and you have to look at where are the returns coming from. Are the returns coming from momentum chasing? You know, the game of hot potato where you’ve got it at this price and you’re hoping somebody buys it for slightly higher. Is that the process or is it actually built on fundamental valuation where you look at an asset and you say, this is what the thing is worth.”

This distinction is crucial for effective retirement transition strategies, as creating inflation-adjusted retirement income becomes more important than chasing growth during market volatility.

Tom and Mike discuss how investment inertia can harm retirees. While “set it and forget it” works during accumulation years, breaking the autopilot investing habit becomes crucial for retirees:

“You need regular income, but you’re invested in something that doesn’t produce it. That’s the rub.”

This insight explains why protecting retirement savings from market volatility through strategic approaches is essential for long-term security.

The hosts highlight how many investors fail to adjust their strategy when transitioning from saving to spending in retirement:

“Autopilot during the savings period has worked. It’s worked really well for a long time. The people that we’re going to be getting calls from pretty soon are those who have stayed on autopilot after retirement or right up to retirement. And they’re now beginning to think, you know, this thing could really diverge.”

This warning points to the need for alternatives to annuities for retirement income that can provide more flexibility and potential growth while maintaining security.

Tom explains how investment fee transparency provides alternatives to annuities for retirement income that set Dupree Financial Group apart:

These advantages create portfolio income generation streams that help in protecting retirement savings from market volatility while being more flexible and potentially more beneficial for wealth management over time.

The episode explores how compensation structures influence the quality of retirement planning advice:

Tom and Mike discuss their research-driven investment process for identifying quality dividend-producing assets that can help in creating inflation-adjusted retirement income:

This approach to how to create income from retirement savings provides a strategic alternative to the passive index investing that dominates many retirement accounts.

Is your retirement portfolio still following momentum investing principles when it should be focused on income? Transitioning from saving to spending in retirement requires breaking the autopilot investing habit that may have served you well during accumulation years. The team at Dupree Financial Group specializes in creating inflation-adjusted retirement income through dividend strategies can work in market downturns.

To learn how our alternatives to annuities for retirement income could help you avoid running out of money in retirement, call us at 859-233-0400 or visit dupreefinancial.com to schedule your consultation. Let us help you with moving from 401k to income-generating investments that provide security in any market environment.

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This blog post is based on the Tom Dupree Show by Dupree Financial Group. The information provided is for educational purposes only and should not be considered investment advice. Always consult with a qualified financial advisor before making investment decisions.

The post Investment Strategies for Retirees: Why Dividend Income Beats Market Momentum HOUR2 3-01-25 appeared first on Dupree Financial.