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What Some Retirees are Thinking About Relative to the Stock Market

The fear of stock losses can be a significant concern for retirees who rely on their investment portfolios to fund their retirement. This fear is understandable since the value of stocks can fluctuate significantly over time, and a prolonged downturn in the market can have a substantial impact on retirement savings.

Tracking the Stock Market
Stock Market

With many people losing anywhere between 15% and 25% in just the last year, nerves are taking over, and fears are rising. One way to address this fear is to ensure that the portfolio is well-diversified, with a mix of stocks, bonds, and other investments. This diversification can help to mitigate the impact of a market downturn on the portfolio's overall value.

Retirees may also consider taking a more conservative approach to their investments as they approach retirement. This is normal behavior no matter what the circumstances in any given market. This may involve reducing their exposure to stocks and increasing their allocation to less volatile assets such as bonds. Careful planning ahead of time is really key.

Another strategy to help mitigate the fear of stock losses is to work with a financial advisor who can help retirees develop a retirement plan that takes into account their specific needs and risk tolerance. A financial advisor can also provide guidance on when to make adjustments to the investment portfolio based on market conditions. Another option a reputable advisor may consider is shifting some assets to tax-free growth vehicles such as Roth IRA’s or LIRPs. Both offers tax-free growth and are tax-free when withdrawals are made. Keep in mind the Roth has income limits attached to it, so the bigger bang if you qualify is the LIRP. Additionally, you can convert traditional IRA’s to Roth incrementally so that you don’t bump up to the next tax bracket. This is an excellent strategy and requires a skilled professional to perform the calculations to make it work effectively.

Ultimately, it's essential to remember that investing in stocks does come with some level of risk, and retirees should be prepared for the possibility of market downturns. However, with careful planning and a diversified investment strategy, retirees can help to minimize the impact of stock losses on their retirement savings.

If you have questions or are worried about having too much of your retirement in the stock market, reach out for a free consultation at 775-325-4649 or email us at


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