The Setup:

We continue our discussion on savers and some of the missteps they can make along the way. Saving is key to retirement success but are you getting the best return on your money for your needs? Today we look at risk and how it can impact your portfolio negatively if you don’t put a pan in place to deal with downturns.

[spp-player url =https://unlockingyourfinancialfuture.podbean.com/mf/play/xvub4t/007_-_BEN_SCHROCK_-_SAVING_MISTAKES_PT_2-2.mp3]

Click the timestamps below to skip to a specific topic in the episode.

The Combination:

Savers come in many different varieties and just because you’re putting money away doesn’t mean you’re getting the best return.

On this episode of Unlocking Your Financial Future, we’ll continue our four-part series on the risks that savers face. Last week we discussed people that decide to be too conservative by keeping too much cash in their portfolio. In part 2 we look at the other end of the spectrum by discussing the investors that take on too much risk in their portfolio.

For some savers, they’ve been so successful through the years with an aggressive approach and it can end up hurting them as they approach retirement. For others, they might not even know exactly how much risk they’ve taken on because they don’t completely understand all of their investments. Both can be an issue because a downturn in the market can end up costing you quite a bit of money that you are depending on for retirement.

Ben Schrock welcomes back on his portfolio manager, Keith Lockwood, to help us with this conversation and explain some of our strategies we utilize when building a plan for clients. How can we offset that risk? What investments do we prefer? And find out how we use software to determine your risk number.

We’ll close the show by taking a listener question about annuities and what age you should start taking payments.

We’ve laid out the main topics below. Click the timestamps to jump around in the episode


Key Points:

2:03 – Today’s main topic is part 2 of our Risks Savers Face series.

2:18 – Why is risk so important to understand when setting up your portfolio.

3:23 – What are some examples of riskier investment products?

4:55 – We have software that can analyze your risk tolerance.

6:27 – What kind of reactions do you get from clients when they learn their risk number?

7:38 – The highest risk number we’ve seen is 98.

8:27 – How we help clients understand risk and prepare their portfolio to handle it.

10:56 – We like boring in our office.

12:04 – Mailbag question: My wife bought an annuity several years ago. She has the option at 60 to take money now but for a third less than if she waited until 65. What do you usually see clients do in this situation?


Related Content:

The Risks That Savers Face: Too Much Cash – Part 1