Strategies for a Confident Future

Planning for retirement can be an overwhelming endeavor, especially when it comes to determining the right asset allocation for your portfolio. While various strategies and guidelines are available, such as the rule of subtracting your age from 100 to determine equity percentage, it's crucial to acknowledge that everyone's situation is unique and requires personalized attention.

When constructing a retirement portfolio, it's vital to consider factors like your age, overall financial goals, and risk tolerance. With longer life expectancies becoming the norm, ensuring that your assets will sustain you throughout retirement is increasingly essential. According to the Social Security Administration, the average life expectancy for a 65-year-old male today is 84.3, while for a woman, it's 86.7. Therefore, constructing a portfolio that both safeguards your assets and generates lasting returns is crucial.

While a conservative portfolio may seem like a safe choice for asset protection, it might not generate sufficient returns to support you throughout retirement. An excessively conservative approach could increase the risk of depleting your funds earlier than expected. Conversely, an overly aggressive portfolio can also be risky, especially if you plan to withdraw from it during volatile market periods.

So, what is the optimal asset allocation for your portfolio? This is where the expertise of a qualified financial advisor becomes invaluable. Finding a financial advisor who understands your unique circumstances and designs a plan aligned with your objectives and risk tolerance is essential.

Some advisors recommend the container method as a strategy. This approach involves categorizing your assets into containers based on their time horizon. For example, the short-term container might be invested conservatively, while the medium-term container could follow the "100 minus your age" strategy. The final container, with a minimum investment horizon of 15 years, maybe the most aggressive. This strategy helps strike a balance between asset risk and growth potential.

It's important to note that different financial advisors may have differing opinions on the optimal asset allocation for your retirement portfolio. However, the key is finding an advisor who can tailor an approach to your financial situation and objectives.

Another consideration when planning for retirement is the current state of the bond market. For example, in the past when bond interest rates were historically low, affecting bond investment returns. Some advisors have suggested allocating more of your portfolio to equities, which typically generated higher long-term returns.

However, investing in equities carries more risk than investing in bonds. Stock market volatility can lead to significant fluctuations in your portfolio's value. Therefore, working with a financial advisor who can help you assess the risks and potential rewards of stock investing is crucial.

Retirement planning is a complex process that necessitates careful consideration of various factors, including age, financial goals, and risk tolerance. While numerous strategies and guidelines are available, finding an advisor who can provide a customized plan for your circumstances is essential. Whether you opt for the "100 minus your age" strategy or a more aggressive portfolio, remember that your retirement plan should be tailored to your needs and objectives.

Recent studies have shown the positive impact of socializing and maintaining strong social connections on the cognitive function of older individuals. A study published in the Journal of Gerontology: Psychological Sciences in 2021 found that socializing with family and friends helps older individuals maintain memory and processing speed. This is particularly relevant for the target audience of 60-year-olds, as retirement often leads to reduced social interactions and the risk of isolation. Encouraging retirees to maintain their social connections improves their mental health and enhances cognitive function.

Preparing for retirement is akin to preparing for a long hike. As you plan and pack for a successful hike, you should carefully prepare for retirement. Ensuring you have everything necessary for a comfortable and enjoyable journey, from appropriate footwear to sufficient water and food, is crucial. Similarly, having adequate savings, a well-designed retirement strategy, and access to healthcare and social activities will make your retirement years fulfilling and worry-free. Take the time to prepare and make the most of your golden years; don't leave your retirement plans to chance.

Ready to take the first step toward a confident retirement? Book a free consultation with one of our experienced financial advisors today and get personalized guidance tailored to your unique financial situation and goals.

The foregoing information has been obtained from sources considered to be reliable. Still, we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of The Lynch Retirement Investment Group and not necessarily those of Raymond James.

Every investor's situation is unique, and you should consider your investment goals, risk tolerance, and time horizon before making any investment. Before making an investment decision, please consult with your financial advisor about your individual situation.

Remember that there is no assurance that any strategy will ultimately be successful or profitable or protect against a loss.

Past performance may not be indicative of future results.

Bond prices and yields are subject to change based on market conditions and availability. If bonds are sold before maturity, you may receive more or less than our initial investment. Inverse relations between interest rate movements and fixed-income prices exist. Generally, when interest rates rise, fixed-income prices fall, and when interest rates fall, fixed-income prices rise.

Lynch Retirement Investment Group 2016, 2017, 2018, and 2019

John M. Lynch, CIMA®, CPWA®

John M. Lynch, CIMA®, CPWA® Managing Director – LRIG
Financial Advisor– RJFS, of The Lynch Retirement Investment Group, LLC.
Was named on the 2021 Forbes Best-In-State Wealth Advisor List.

John M. Lynch, CIMA®, CPWA® Managing Director – LRIG, Financial Advisor – RJFS

Andrew Fentress, CFP® Financial Advisor

Adam Tobin, CFP®, CRPC Customer Relationship Manager

Barron's "Top 1,200 Financial Advisors," March 2022. Barron's is a registered trademark of Dow Jones & Company, L.P. All rights reserved. The rankings are based on data provided by 6,186 individual advisors and their firms and include qualitative and quantitative criteria. Factors included in the rankings: assets under management, revenue produced for the firm, regulatory record, quality of practice, and philanthropic work. Investment performance is not an explicit component because not all advisors have audited results and because performance figures often are influenced more by a client's risk tolerance than by an advisor's investment picking abilities. The ranking may not be representative of any one client's experience, is not an endorsement, and is not indicative of the advisor's future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. Barron's is not affiliated with Raymond James. The Forbes ranking of Best-In-State Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisors that are considered have a minimum of seven years of experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience, and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criterion due to varying client objectives and a lack of audited data. Out of approximately 32,725 nominations, more than 5,000 advisors received the award. This ranking is not indicative of an advisor's future performance, is not an endorsement, and may not be representative of (individual clients' experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC. Please visit https://www.forbes.com/best-in-state-wealth-advisors for more info