Blog post written by Dale Decker
We all have different tolerances for risk. Some people prefer to go big and climb Mount Everest. Others are perfectly content to stay close to home and go apple picking.
But risk tolerance isn’t limited to hobbies and free-time activities. Risk tolerance also plays a role in your personal finances. Below are some strategies to consider in retirement, based on whether you prefer more of a calculated probability approach or a safety first approach to investing.
On last Saturday’s Secured Retirement Radio show, Joe Lucey and Kari Donnelly talked about Social Security’s 80th birthday and how it’s now a core piece of any retirement strategy. They also discussed how many retirees are either probability or safety first oriented when it comes to their retirement funds.
Joe and Kari provided information on different strategies to enhance retirement:
- Probability Investing: The goal is to maximize safety, while also reaching out to climb and increase income during retirement years.
- Safety First Investing: The goal is to minimize all risk in favor of returns that are secure and yield and replenish the fruit of investments.
- Transformational Investing vs. Transactional Investing: A cohesive plan with overall goals vs. a parade of transactions.
Ask your self the question: If you had 2 million dollars what would you do? Listen to this week’s show and find out.
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