GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you might read more about oureditorial guidelinesand our products and servicesreview methodology.
Creating a retirement plan that will survive the changing financial landscape is more important than ever.
Arecent articlefeatured an expert who shared what makes a retirement plan successful.
Without income production from ones assets, it is difficult to effectively stop working.
Investing for growth helps your savings outpace inflations rising costs.
This means you want to see your funds grow consistently over time to have alarger nest eggfor your retirement.
No one wants to spend their golden years worrying about financial ruin.
There are different forms of protection for your retirement plan, and theyre all equally important.
You want to do whatever you could to protect yourself and your finances as you transition to life post-work.
Guaranteed income sourceslike Social Security, pensions, or annuities are the most common sources of income protection.
Asset Protection
Asset protection cant be ignored either, especially since market-based investments can experiencevolatility and losses.
Kates suggests setting aside a certain amount that isnt correlated to the market and can grow without risks.
You want the ability to move amongvarious asset classesif protection is important to you, Bernstein remarked.
Some plans have Stable Value Funds, Money Market Funds or other Low Duration Bond Funds to provide that.
He stressed that liquidity ensures you’re able to ride out market storms without sacrificing your long-term goals.
Many company retirement plans have loan provisions providing some liquidity, noted Bernstein.
Liquid money offers flexibility without waiting for the next paycheck or payment.
Liquidity without growth will suffer from inflation.
Growth-focused assets without protection have too much market risk.
Protection without income or liquidity leaves retirees at the mercy of an unexpected expense.
Share This Article:
