Retirees Can Invest for Income and Growth with Less Risk to Both

by | Case Studies, Integras Insights, Retirement

Ann was facing her next chapter in life. She was recently widowed and had been considering retirement. She wanted to live near grandchildren and downsize her home.

Almost all of Ann’s assets were in a company retirement plan, advised by the plan’s financial advisor. Because they told the advisor that they “didn’t want to lose money”, Ann’s allocation was 55% short-term bonds and 45% cash. She was eligible for a widow’s Social Security benefit but was reluctant to retire, fearful that she didn’t have enough money.

Ann’s fear stemmed from her thinking that she needed to preserve the capital and live off the interest. Our philosophy is that retirees don’t need to preserve all their capital for their heirs, they just need to not run out of money. Ann actually had enough to retire but it was too conservatively invested to meet all of her spending needs throughout retirement. Our layered risk approach allows clients to feel more peace spending in retirement. This is because we take modest risk with investments for the next several years of spending, then capture market returns with the majority of assets that can now remain invested long enough to go through market cycles. This also allows for greater spending over time to account for inflation.

Ann has since moved into her new home and is spending more time with her grandkids. She has the peace of mind to enjoy life knowing that her investments will continue to provide supplemental income with minimal short-term risks.

If you’re interested in discussing how we might help you, please give us a call at (404) 941-2800, or reach out to us here.

You might also like…

Investing in 2025

Investing in 2025

Today, U.S. stocks are relatively concentrated. An investor in the S&P 500 is putting 40% of their money in the 10 largest companies. Historically, such concentration doesn’t work out well. The S&P 500 is also expensive. Such a concentrated and expensive...

read more
Your New Year’s Guide to the Markets and Economy

Your New Year’s Guide to the Markets and Economy

You’re on your financial journey and we can help people pave their own path. This quarter’s commentary blogs start with a recap of 2024 and our views of economic conditions. Then we share some of our ideas for timely investing. You’re always welcome to speak with us...

read more
Companies are Buying Back Their Own Stock

Companies are Buying Back Their Own Stock

With stock dividends getting taxed twice (once to the corporation and again to the shareholder), many companies are now choosing to return profits to shareholders in the form of stock buybacks instead. While there are several other reasons, the primary one is this...

read more