What Changes When You Retire
While you were working, a bad year in the market was annoying.
You just kept contributing and waited it out. Time was on your side.
Once you are retired and withdrawing money, a bad year is a different animal. You are selling shares to pay your bills at exactly the wrong time. That can do permanent damage to a plan.
So we do not manage retirement money the same way we would manage money for a 35 year old.
How We Invest
We keep costs low
We build portfolios mostly out of low-cost exchange traded funds. Every dollar you do not pay in fund expenses stays in your account.
We match the portfolio to the plan
Your mix of stocks and bonds comes out of your income plan, not out of a questionnaire. How much you need, when you need it, and how long it has to last determine the mix.
We rebalance on a schedule
Markets drift. Left alone, a portfolio slowly becomes something you did not sign up for. We check and correct on a set schedule using professional rebalancing software.
We watch the tax bill in taxable accounts
In accounts that are not IRAs, every trade can create a tax bill. We manage those accounts differently than we manage IRAs, including using municipal bonds where it makes sense.
You always know where your money is
Your accounts are held at Charles Schwab, one of the largest custodians in the country. We never hold your money. You can log in and see everything any time you want.
What We Do Not Do
We do not try to guess where the market is going next week. We do not chase whatever did well last year. And we do not put you in something we cannot explain to you in plain English.
All investing involves risk, including the possible loss of principal. No strategy can guarantee a profit or protect against loss.
