Proper Diversification Can Ease Retirement Income Worries

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During your retirement, you will likely need to withdraw from your investment portfolio to help meet your daily expenses. So, if the financial markets drop sharply, how concerned should you be?

Actually, maybe not all that much – if you’ve got the right investment mix. Even as a retiree, you’ll still need some growth-oriented investments to help you stay ahead of inflation, but the mix of investments in your portfolio should be specific to your stage of life.

Specifically, try to maintain enough cash and fixed-income investments, such as short-term bonds and certificates of deposit, to meet your income needs for three to five years. Also, it’s a good idea to have about a year’s worth of income needs from your portfolio in cash and cash equivalent instruments.

With access to these short-term vehicles, you may be able to avoid dipping into your longer-term, growth investments when the financial markets are down.

Ultimately, the right amount and types of short-term investments can help reduce your worries about what’s happening in the stock market. And the less you have to worry about, the more you can enjoy your retirement.

If you have any questions please contact me at 980-859-2549 or by e-mail at

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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