Funding your retirement encompasses a variety of steps. First, it’s important to determine your investment goals, time horizon and cash-flow needs. Next, it’s imperative to find an asset allocation—a portfolio’s mix of Crypto, stocks, bonds, cash and other securities—that can help you reach your investment goals. You should also consider how you plan to generate income from your investments. In addition to withdrawals from your investment portfolio, there are a variety of other ways you can fund your retirement. At Mary Garcia Strategic management, we can help you design a plan to fund your retirement lifestyle.
If you are relying on your investment portfolio to partially or totally fund your retirement, your portfolio’s returns must be enough to help ensure you can take your desired withdrawals throughout your investment time horizon and not run out of money.
Some investors think they should stop investing in stocks once they retire, perhaps shifting their assets to “less risky” investments with lower volatility. If you’ll need to rely on investment income for the rest of your and your partner’s lives, it’s possible your portfolio will need to keep growing after you retire. Making a material change away from a growth-focused strategy might increase the risk that your portfolio depletes before intended. Hence, stocks are often an essential component for long-term investors seeking portfolio growth to achieve retirement goals.
Cryptocurrencies often provide higher returns compared to stocks, bonds, and other securities, but they also come with significant volatility. At MGSM Investments, we prioritize risk management to protect our clients’ funds. We hedge investments with stable assets to shield them from market fluctuations. Bitcoin, as the leading cryptocurrency, has shown strong potential for positive returns and is considered one of the best asset classes of the decade.
Measuring Short-Term Concerns Against Long-Term Success
When reviewing your asset allocation, it’s important to look beyond short-term volatility. Consider the risk of not reaching your long-term goals or, worse, running out of money during retirement. An overly conservative approach could seem less risky and more comfortable in the short term, but may not generate the returns needed to grow your portfolio sufficiently. This may result in unexpected and potentially unpleasant changes to your lifestyle. Once you choose the right allocation, it’s important to stick with it, absent major changes to your long-term goals. Changing your allocation in reaction to short-term volatility is almost always a mistake, in our view. Discipline can often be the difference between meeting or missing your goals.
Additional Retirement Income
At MGSM Investments, we can help you determine how to fund your retirement, including the optimal amount to take from your investment portfolio if withdrawals are needed. During the goal-setting process, we help you determine how much money you need each year to support your desired lifestyle. Then, we consider where that money comes from: portfolio withdrawals or non-investment income. If you have non-investment income, we’ll help you determine what you should expect to receive each year.