Ask Terry Questions Retirement funds

Retirement funds

By Terry Savage on August 15, 2019 | Investments

Im retired, and 71. My pension along with my SS payments are enough for me to live comfortably
in retirement at this time. I also have a IRA and Roth that I do not have a need to utilize. But, with what is happening with the markets and trade wars I’m concerned that within the next 4-5 years,
I may be in need of that extra income, for travel and expenses. Should I be looking at ajusting my investments to at least minimize any losses and maintain the objective of growth which are the funds primary objective at this time ?

Thanks, Rich

Terry Says

Absolutely you should reexamine your exposure tot he stock market.  Unless you are willing to forego some of those plans for the future.  You will likely live at least another 20 years — and in history there has never been a 20-year period in which you lost money in a diversified stock market investment, with dividends reinvested.  But if you are going to need some of that money in less than 10 years, you might want to have a nice cash cushion so you aren’t forced to sell stocks in a bear market at a loss.  This would be the time to assess your risk tolerance, timeline for using the money, and adjust your investments.  We are still less than 10 percent below the market top!  Read my recent column:  Sell Down to the Sleeping Point.

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