Retirees, Strengthen Your Portfolio’s Defense Barrier

September 12, 2014

by Michelle Perry Higgins


Start Shopping for Long-Term-Care Insurance at 45Like married retirees, single retirees may not have thought through just how much of their portfolio should be in fixed income versus stocks. The stock market goes through cycles, and those corrective periods like 2008 and August 2011 aren’t easy to maneuver emotionally. Having a strong “defensive barrier” of fixed income in the portfolio that retirees draw their income needs from allows them to forego the panic button when markets go down.

Typically, I find clients with strong defensive barriers in their portfolio are less concerned with short-term corrections and volatility in the market because they know they can make it through “X” number of years before they have to touch their equity positions within the portfolio. This helps keep emotions at bay and prevents impulsive decisions based on fear.