Portfolios are usually constructed based on the individual’s investment objectives, the risk tolerance and the time horizon.
Investors can feel confident that they own a well-diversified portfolio but only if they use these inputs and portfolio optimization calculations, so that they pursue their long term goals.
As a retiree, your retirement goals play a major role in building your portfolio.
Starting a business?
If retirement funds are used to start a business it entails your risk. You might want to consider reducing risk levels of your investment portfolio to compensate for risks for a new business venture.
Of course a new business cannot generate income right away and hence you might want to construct a portfolio which is income oriented and provide you for your current income till the business begin to earn profits.
It is good to take advice from professional money manager for your retirement savings as if you plan on extended travel you might be disconnected from your current events and investing in individual securities would not help you. Hence, professional management may suit your retirement best.
Market changes can undermine your retirement income strategy.
There are products and strategies that might protect you from drawing down your savings when your portfolio value is falling as it may come at the expense of some opportunity cost and this is a major cause of failed income approach.
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