Broker Check

Market Conditions and Timing Your Retirement

November 20, 2018

Should Market Conditions Influence Your Retirement Decision? 

There is much said about the risk of retiring at the peak of a market.  It is generally considered that such timing is not good for the retiree.  And this is a real concern as we take stock of a market that has seemed to lose its momentum after a 10 year bull run.  However, in real life, most retirees are not invested 100% in stocks.  This article considers how an individual retiring at historical market peaks would have fared if he or she were invested in a diversified portfolio of 60% stocks and 40% bonds.  The article also adjusts for inflation, and periods of rising interest rates which tend to be difficult for bond investors.  The good news is that in each of the "worst case scenarios" the retirees would have done fine assuming a 4% initial withdrawal rate - even in the very difficult market years of 1929 and 2000.  Click below link to read the full article.