Crashes, Retirement, and Bears, Oh My! How Investing Changes in Retirement

The way you invest changes in retirement. Rather than being in the accumulation stage of life, now it’s time for the decumulation stage. But how do you flip that switch? How should your investment strategy change to reflect this new period in your life? During this monthlong series, we’ll be learning how to deal with bear markets and crashes in retirement. You may be thinking, why should I worry about bear markets when 2019 was so hot? Well, that is precisely why you should begin to consider how you would handle a bear market or a crash in retirement. Learn to be prepared for any eventuality by listening to this episode of Retirement Answer Man now.  Are you trying to fit a square peg into a round hole? Certain decisions are larger and more important than others. Retirement is one of those high stakes decisions. You’ve got a lot to learn if you are going to get it right.  Investment strategy is typically built on the idea of accumulating wealth. That’s what you’ve been trying to do your whole life, right? But investing in retirement is quite different than any other kind of investing. When investing in retirement people often try to fit a square peg into a round hole. Listen in to learn why investing the same way you have for your entire adult life won’t work in retirement.  5 ways that investing in retirement is different than any investing you’ve ever done The math changes. You have had plenty of time to invest which has allowed you to outperform by investing your money consistently. Unfortunately, retirement turns the tables. Now, instead of investing systematically, you are taking money out of the market systematically.  You have lost your superpower. You no longer have the ability to earn income. This can really affect you psychologically. When you were working you could simply earn your way out of many financial missteps.  Fear of missing out. Do you feel like you're missing out on the next best thing? Statistics are good at lying. We tend to think in statistics, but unfortunately, statistics aren’t very good for decision making. You only get one shot at this. Unlike the accumulation phase of life, there are no do-overs.  The Secure Act passed! In a rare act of unity Congress actually got something done! We’ve discussed what the Secure Act might mean for you in previous episodes, but now it has officially become law. This means that there are changes coming to a retirement near you. This bill has changed RMD’s, IRA limits, 401K’s, and done away with Stretch IRA’s. Find out what the Secure Act could mean for your retirement by listening to this episode of Retirement Answer Man. What does sequence of return risk mean? When researching retirement you may have heard the term sequence of return risk thrown around. But do you really know what that means? You may plan on getting 5% returns, but steady returns on investment rarely happen. You could get 0% one year and 12% the next. Find out how bad returns at the beginning of your retirement can impact the viability of your overall retirement plans. Make sure you’re signed up for 6-Shot Saturday to see plenty of examples of sequence of return risk.  OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN HOT TOPIC SEGMENT [4:28] 5 ways that investing in retirement is different than before  PRACTICAL PLANNING SEGMENT [18:05] Our words for the year [23:06] The Secure Act passed! LISTENER QUESTIONS [27:48] How to maintain a balanced portfolio in a bear market WHAT DOES THAT MEAN? [34:43] Sequence of return risk SMART SPRINT SEGMENT [37:25] What is your word for the year? Resources Mentioned In This Episode Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement  by Roger Whitney Work with Roger Roger’s Retirement Learning Center