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Retirement is no time to get too conservative with your investments
Retirement is no time to get too conservative with your investments
For many people, retirement seems to be the time to put your money into investments that many people perceive to be “safer,” such as bonds and CDs.
Although it seems logical to want to preserve—and not take risks—with your savings, putting your hard-earned dollars into conservative investments may not be the best strategy for you.
If you’re like most people, the most important question you have as you approach retirement is, “How can I keep what I’ve spent a life time saving?” Yet that’s just one part of the equation.
Preserving your nest egg is an important consideration, but there are other important matters to consider, including:
- How do I prevent skyrocketing healthcare costs from eating away at my savings?
- How can I ensure that my assets will last as long as I live?
- How do I protect my current savings from inflation?
- Can my assets provide me with retirement income?
Although stashing a retirement nest egg in conservative investments is appealing, these vehicles may not accomplish the things you really need, such as providing a steady income stream in retirement, or hedging against inflation.
Keep in mind that one dollar will buy more goods and services today than it will in 20 years. At 3% inflation, what costs $1.00 today will cost $1.75 in 20 years. If your savings don’t keep up with that rate of growth, your ability to purchase actually declines.
In short, rather than enjoying a steady stream of retirement income, you may experience a gradually declining paycheck—something none of us wants during our “golden years”.
Contact your Thrivent Financial representative for help creating a sound investment strategy during retirement.
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