Fri Nov 01 2024, by Tyler Gardner

Three Essential Steps to Secure Your Retirement

The number one question I get asked on one-on-one consulting calls is, am I going to run out of money in retirement? So here are three things you need to do before you retire.

I'm Tyler, a former financial advisor and portfolio manager, and now I create financial content for free so you don't have to pay for it.

1. Buffer Your Assets

Some assets are considered risk on, while others are considered risk off, meaning they're protected from market downturns while still capable of growth or providing returns. You can buffer your portfolio through short-term treasuries, long-term bonds, CDs, and money market funds. This way, if the market tanks in your early years of retirement, you wouldn't have to sell or touch your risk on assets while they're at a discount.

2. Increase Your Margin for Error

In your projections, instead of assuming a 7% return from stocks, assume 5%. Instead of assuming you will receive social security, consider the possibility that the government runs out. Instead of assuming spousal income, prepare for the absence of it. Run your worst-case scenario and see how it turns out.

3. Get Your Debt in Order

Many people always focus on what’s coming in and conveniently leave out what’s going right out the door. Do you still have kids in college or living at home? Is your house paid off? What about that business loan? All of this can be manageable with a predictable income, but can be detrimental in retirement with a few bad market years in a row.

If any of this is helpful, like and follow, and I'll keep trying to get you one step closer to where you need to be.

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