Reaching Retirement? 3 Ways An Investment Advisor Can Help

Are you approaching retirement? Americans in your position face many new challenges as they transition from retirement savings to retirement withdrawal. One person that can help you make this change successfully is an investment advisor. How can this particular advisor help right now? Here are three important ways.

1. To Help Reduce Risk

When you were saving towards retirement, risk was a necessary investment tool. Without being willing to risk some financial loss, you can rarely achieve the growth needed to build your retirement portfolio. However, once you reach retirement and plan to withdraw, much of that risk becomes a liability. After all, you don't want to have to sell investments for cash when they're at a loss. 

An investment advisor will assess your level of risk and how you plan to withdraw money. Then, you can work together to ensure you don't continue to invest in anything that's riskier than is necessary to meet your financial goals. 

2. To Avoid Too Little Risk

While too much risk is the most common threat to retirees, you can have too little risk. Avoiding all risk means your portfolio will stop growing or that growth will slow to a crawl. Most retirees assume that what remains in their investments will continue to carry on some type of growth, helping replace what is withdrawn each year.

So while your instinct may be to retreat to an entirely safe portfolio, an advisor will help you find the right kinds of risks and use them strategically to provide some balance. 

3. To Switch to Income Investments

Stocks and bonds that provide growth in their value differ from those which provide a steady stream of income returned to the investor. While a mix of both is generally a part of every portfolio, the nature of that mix depends on specific goals. 

Dividend-paying and other income-generating stocks are an important part of many people's retirement income streams. If you plan to use income from dividends and interest as a major source of revenue, you will need to change your investment strategy and mix. The best person to help you choose this new strategy and make it work is a professional advisor. 

Where To Learn More

Want to know more about how an investment advisor can help your particular portfolio as you reach retirement? Begin by making an appointment with an experienced advisor in your area today. Together, you can craft a portfolio that will carry you into retirement with confidence and security. 

About Me

Creating A Better Financial Future

About a year ago, I realized that there were some issues with my financial picture. It seemed like no matter what I did, I just couldn't get ahead. I started thinking about it and I wanted to make a better life for my family, so I started working harder to manage my finances. I started by creating a little budget and focusing on sticking to it, and it was really incredible to see how well things progressed. Within a few months, our entire financial picture changed, and I knew that I owed it all to my improved financial planning. This blog is all about creating a better future.


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