Growth, Safety, and Liquidity for Early Retirement Investments


You’ve probably heard the advertising of many investment firms talking about how they can help you, or insurance agent discussing safe money options and guarantees.  Don’t get me wrong, I think having both growth and safety option in your portfolio are great things.  However, it’s not a one-size-fits-all approach.  When I work with a client, I want to look closely at the specific needs of my customer and develop a strategy that fits their goals.  Especially when facing retirement, there is a balancing act that needs to occur in your portfolio and your needs should be assessed before a solution can be recommended.

I tell my clients there are three things we all want with our money; growth, safety, and liquidity.  Unfortunately, there isn’t one magic bullet financial vehicle that gives us all three.  One might provide growth and liquidity, sacrificing safety.  Another might provide liquidity and safety, sacrificing growth.  And last,  we have growth and safety where we can trade off the liquidity that isn’t needed.  It’s all about balance and having appropriate ratios of all types of money.

It’s also important to remember that the more growth potential an investment has, it usually means the riskier the investment and conversely, the safer the investment is, the more limited the growth upside.

So, it’s critical to achieve the proper growth and balance necessary for a more secure retirement.  If you error in your portfolio design, it could have negative consequences.  When losses occur and you are no longer contributing to your retirement accounts, your account has to work harder to recover.  You want to make sure you aren’t in a scenario where you are worried about running out of money in retirement.

Market-based investments aren’t the only vehicles that carry risk.  Safety-based vehicles, while not exposed to market risk, are still exposed to inflation risk.  And, if it’s a long retirement, it’s going to be important for to have growth and future income options.

Is it a precarious position, making sure that you have the right counterbalances for a long-lasting and secure retirement?  Absolutely!  I believe that my most important duty as a financial advisor is finding that harmony in investment vehicles that have a greater chance for a successful long retirement, without the fear of running out of money.

My Technology Empowered Advisor Method helps me demonstrate this to my clients.  With my knowledge of financial planning, investment, taxes, and insurance coupled with advanced software, I’m able to design and test a retirement solution based on your unique situation.

I know that a lot of people are facing a situation where they are looking at retirement sooner than they thought they would.  This is the situation where having the right plan is so important because, without the right plan, a lot can go wrong over years and decades. Let’s talk about your retirement plan’s balance, specific to an early and long retirement!  Below, you can find a convenient time for a complimentary meeting.

I’ll look forward to hearing from you soon!