Page 8 - 2018 How to Retire from Florida

5

Question #5:

How should I save and invest

during retirement?

If you have placed your contributions and If you desire an investment portfolio, a
interest into a rollover account, you will DROP Advisory Council member, who is a
want to choose an appropriate investment registered representative, will work with
strategy that compliments and integrates you. An investment portfolio has two
into your personal financial situation. important ingredients of design - Asset
Allocation and Diversification. While
Some retirees think they need to put 100% neither assure against market loss by not
of the money into either aggressive growth "putting all of your eggs in one basket," your
accounts or very “safe” accounts. You need ultimate goal is to improve the performance
to do what is right for you. First, you have a of your portfolio while reducing risk. If you
high likelihood that you will live at least 30 want to invest for income, you can diversify
years after you retire, longer if you are in among bonds; government, corporate or
good health, are married, and have come high yield bonds; or U.S., global or
from a family of octogenarians. Second, international bonds. If growth is your goal,
every year, everything you buy will cost diversification would include investing in
more than it did the previous year. If small to large companies whose objectives
inflation approximates 3% for the next 24 are either value or growth.
years, you will need two times as much
income to maintain your current standard Asset Pyramid
of living! The Asset Pyramid illustrates how you can
build your portfolio on a solid foundation.
Those safe investment instruments (CD's, The pyramid also demonstrates that before
Treasuries, savings accounts, etc.) will avoid investing, you need to address the issues of
the volatility of the stock market, but they life and long-term care insurance, regular 6
tend to yield returns close to or less than the savings, an emergency fund, debt reduction
rate of inflation. and estate planning.

Fixed indexed annuities can protect your
principal and earned interest from market
loss, while providing more interest than Stocks
Investments
CD's and fixed annuities. They also can Mutual Funds
provide Guaranteed Income for Life. Variable Annuities

With proper planning, your account can Increased Risk Fixed indexed Annuities
grow and keep pace with inflation. A DROP Bonds | Fixed Annuities
Decreased Risk
Advisory Council member can help you
determine your risk tolerance and Life Insurance | Money Market Fund
recommend products that meet your needs. Cash | Emergency Cash Fund