For nearly nine years, investors have enjoyed one of the longest bull markets in history. However, recent volatility suggests the possibility that the almost decade-long market upswing could soon come to an end.
Volatility is a constant presence in any financial market. For retirees, that volatility can present a difficult challenge. You may rely on your savings and investments for income. If the market suffers a sharp downturn, you may have less income available to pay your bills and support your lifestyle.
There’s no way to predict the future movement in the market. However, you can take steps to protect your assets and limit your risk exposure. If you’re approaching retirement and haven’t yet analyzed your investment strategy, now may be the time to do so. Below are a few tips to help you get started:
If you’re approaching retirement, you may be in the process of developing a budget and determining how you’ll fund your cost of living. You’ll likely face expenses for things such as housing, food, utilities, travel and more. You may also face costs for things like taxes and debt.
Health care, however, is one major expense category you shouldn’t ignore. Many retirees assume that Medicare covers all health care costs. That assumption is usually incorrect. In fact, Fidelity estimates that the average retired couple will spend $275,000 on out-of-pocket medical expenses.1 That figure doesn’t even include the cost of long-term care.
The truth is that Medicare doesn’t cover everything. In fact, there are some services that aren’t covered by Medicare at all, and many are only partially covered. You’ll have to pay the difference, possibly out of your retirement assets.
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