Many Americans fear a future crisis could derail their retirement, yet only 46% have accounted for those risks in their plan. To ensure resilience, diversify income sources, consider overlooked risks like healthcare and long-term care, and stress-test your strategy annually.
A crisis-proof retirement plan requires diversified investments across time horizons, tax treatment, and asset classes. Mixing fixed and variable income sources like Social Security, annuities, and bonds can provide flexibility based on market conditions and help mitigate longevity, healthcare, and tax risks.
To protect against unexpected crises, consider hybrid life insurance with long-term care riders, bond ladders, and flexible withdrawal strategies. Stay diversified to build resiliency, as relying on a single approach can leave you vulnerable to market volatility, inflation, and tax law changes.
Annual reviews of your retirement plan should include stress-testing different scenarios like early retirement, market downturns, or tax policy changes. Consider phased retirement or part-time work to stay engaged and financially stable, especially if you have a modest retirement savings amount.
Nearly half of Americans lack a written financial plan, leaving their retirement savings vulnerable to critical risks. Crisis-proofing your retirement isn’t about fearing the worst, but rather building durability by diversifying income streams, considering overlooked risks, and staying flexible with your withdrawal strategy. 1. The stock market reached new highs today, with the S&P 500 hitting a record close of 4,352.34 and the Dow Jones Industrial Average closing at 34,633.53. This comes amid strong corporate earnings reports and optimism about economic recovery.
2. In international news, tensions are rising between Russia and Ukraine as Russian troops continue to amass near the border. The United States and European Union have expressed concerns about a potential military escalation in the region.
3. The CDC has updated its guidelines on mask-wearing for fully vaccinated individuals, stating that masks are no longer necessary in most indoor and outdoor settings. This decision comes as COVID-19 cases continue to decline across the country.
4. Tesla announced plans to open its first manufacturing plant in India, as the electric vehicle company looks to expand its presence in the growing market. The plant will produce both vehicles and batteries, with production expected to begin next year.
5. The Tokyo Olympics are set to begin in less than a month, despite concerns about COVID-19 and protests from the Japanese public. Organizers have implemented strict safety protocols to prevent the spread of the virus among athletes and staff.
Read more at Yahoo Finance: Is Your Retirement Fund Prepared for a Crisis? Here’s What Most People Overlook