For over 15 years, Darcy Bergen has worked as a financial advisor. The president of Bergen Financial Group, Darcy Bergen provides guaranteed income retirement planning services to people approaching retirement. These are especially beneficial in times of high volatility in the financial markets.
The stock market goes up and down. In the investment world, the future is not known. Political shocks, economic crashes, natural disasters, terrorism, and other events can happen, all of which carry the risk of market losses. Should losses occur, the effect on a retirement plan based solely on stocks, real estate, variable annuities, and other variable investments can be devastating.
A secure retirement is not out of reach for most, however. While market downturns are a given, it is usually possible to recoup losses with enough time. Unfortunately, for people approaching retirement, time is not on their side. Consider this - if a portfolio declined by 25 percent this year, it would need to grow by 33 percent next year to break even. If it declined by 50 percent, it would need to increase by 100 percent in the following year to get back to where it was. Younger people generally have enough time to recover such losses. However, the older you are, the less time you have before retirement, hence the shorter your recovery time should a setback occur. This is why it is generally advisable to shift most savings and other assets to guaranteed income vehicles as you approach retirement.
The stock market goes up and down. In the investment world, the future is not known. Political shocks, economic crashes, natural disasters, terrorism, and other events can happen, all of which carry the risk of market losses. Should losses occur, the effect on a retirement plan based solely on stocks, real estate, variable annuities, and other variable investments can be devastating.
A secure retirement is not out of reach for most, however. While market downturns are a given, it is usually possible to recoup losses with enough time. Unfortunately, for people approaching retirement, time is not on their side. Consider this - if a portfolio declined by 25 percent this year, it would need to grow by 33 percent next year to break even. If it declined by 50 percent, it would need to increase by 100 percent in the following year to get back to where it was. Younger people generally have enough time to recover such losses. However, the older you are, the less time you have before retirement, hence the shorter your recovery time should a setback occur. This is why it is generally advisable to shift most savings and other assets to guaranteed income vehicles as you approach retirement.
