5 Tips to Help Your Retirement Savings Last as Long as You Live

Avoiding one of the biggest retirement risks out there takes careful planning. Here are five ways to help make sure your retirement portfolio can go the distance.

(Image credit: Getty Images)

Running out of money in retirement is a serious concern for many people. Most people envision retirement as a joyful time filled with leisure activities, traveling and other aspirations. However, when people quit working and earning an income, an uncomfortable reality sets in: They realize their savings need to last for the rest of their lives.

One of the biggest threats to your portfolio in retirement is called sequence of return risk. It’s the risk of depleting your portfolio due to withdrawing money during periods when the markets are falling. When you take money out of your portfolio during these times, your account losses snowball.

Whether you get a good sequence or bad when you begin your retirement is a matter of luck. You can’t control the direction of the market, but you can control how you react when your portfolio experiences a bad sequence.

Here are some strategies that may be effective in reducing the risk if you do run into a poor sequence.

Written by Matthew Stratman, a financial adviser at Western International Securities in Southern California. His focus is helping business owners and entrepreneurs who are planning for retirement. Matt is extremely passionate about retirement planning, believing the better prepared a person is, the more fulfilling their retirement will be.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Matthew Stratman
Financial Adviser, Western International Securities

Matt Stratman is a financial adviser at Western International Securities in Southern California. His focus is helping business owners and entrepreneurs who are planning for retirement. With a strong, client-centered approach he creates personalized investment strategies to help them reach their financial goals. Matt is extremely passionate about retirement planning, believing the better prepared a person is, the more fulfilling their retirement will be.