Rethinking Retirement: Why Your Investment Journey Isn't Over

Kristopher Cotton |

Let’s consider a topic that’s crucial for those nearing or already enjoying retirement: managing your investments post-retirement.

You've likely spent decades—your 20s to your 50s—diligently contributing to your retirement plan, maybe through dollar-cost averaging at work or investing in a couple of IRA accounts. And chances are, a significant portion of your portfolio was invested in equities, which, if you’ve stayed the course, has probably served you well over the years.

As retirement approaches, it’s common to consider reducing risk. You’ve probably heard about or even considered shifting towards a 60/40 portfolio—less in equities and more in bonds or even CDs and other cash alternatives. But here’s a challenge for you: think about whether your investment journey truly ends the moment you retire. Spoiler: It doesn’t!

Retirement could span 15, 20, or even 25 years, filled with dreams and goals like traveling or spending more time with the grandkids. With the current risk-free rate of return around a healthy 5%, it might seem like you’re set for now—but rates change, and relying solely on low-risk investments might not suffice to support your long-term goals.

That’s why maintaining a certain level of equity exposure might be essential. However, the “right” amount of risk varies for everyone—personal finance is, after all, personal. At Clarity Wealth, we spend considerable time helping our clients find that sweet spot, balancing mathematical sense with personal comfort.

For instance, if having 50% of your portfolio in equities would make you lose sleep every time the market dips, then it’s not the right strategy for you, no matter what the numbers say. It’s all about finding a balance that allows you to enjoy your retirement without constant financial stress.

Remember, your investment journey doesn’t end when you retire. The path still stretches ahead, and a well-considered mix of equities and safer investments can ensure you continue to fund your dreams effectively.

If you're rethinking how to handle your investments post-retirement or if you're curious about how to adjust your portfolio to suit your new lifestyle, don't hesitate to reach out. We’re here to guide you through every step of your financial journey, ensuring that your golden years are truly golden.

And for more insights on retirement and investment strategies, be sure to check out our YouTube channel. Let’s keep the conversation going—because when it comes to retirement planning, it’s never too late to optimize your strategy.

Hope you have a great rest of your week, and let’s make it a great day!