This week, I’m talking about the danger of retiring during a recession. The problem with retiring during a recession is that your investment portfolio will also likely drop - 10, 20, or even 30% or more, which can derail your plans for retirement.

Today, I want to clarify why a drop in your retirement portfolio a couple of years on either side of retirement is problematic.

I’m going to throw some numbers at you so stick with me. Let’s say you have $1,000,000 saved for retirement, and the next recession hits and your portfolio drops 20%. That means you don’t have $1,000,000 for retirement anymore. You now have $800,000. The result is that you’ll either need to live off of less income every month - about $660 dollars/month less. Or, if you don’t cut back on your spending, you run the real risk of running out of money.

So, for the rest of this week, I’m going to share with you practical ways you can protect yourself and make sure that the next recession won’t derail your plans for retirement or force you to work longer than you hoped, but today, my goal is to show you that you how important it is to prepare for the possibility of a stock market drop around the time you retire.

The reality is, if you just stick your head in the sand, just let it ride, and don’t take steps to protect yourself, it could mean the difference between financial security and relying on social security in the later years of your retirement.

I don’t want to scare you, but the reality is that a big drop in your portfolio in the early years of retirement can have lasting and serious consequences, so I want you to take this seriously. On that note, thanks for listening!

My name is Ashley Micciche and this is the One Minute Retirement Tip.

----------

>>> Subscribe on iTunes: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Check out our blog: https://truenorthretirementadvisors.com/blog/

----------

Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, retiring soon, retirement concerns, recession