Why You Need To Review Your Portfolio (Before You Retire)
Retirement isn’t just about reaching the summit—it’s about making it back down the mountain safely. That’s an analogy I often use when talking with clients who are preparing to retire.
Think about Mount Everest. Most people assume the goal is to reach the top. But I believe the real goal is to come back down—to share the story, enjoy the view, and live to tell about the journey. Interestingly, many climbers who lose their lives on Everest do so on the descent, not the climb up.
Why? Because they spent all their time training to get there, not to get through it.
The same is true for retirement.
Most people spend decades accumulating wealth, focusing on growth and saving. But few spend enough time preparing for what comes next—decumulation, or turning savings into reliable income. That’s why we recommend a retirement portfolio safety check before you make the leap.
Why Risk Looks Different in Retirement
During your working years, a 10% market drop might have been frustrating—but you had time to recover. You were still contributing to your accounts, buying more shares on the dip.
In retirement, that same 10% drop feels very different—especially if you’re withdrawing income from your investments at the same time. This is what we call sequence of returns risk, and it can dramatically affect your portfolio’s long-term success.
That’s why the strategy that got you to retirement may not be the one that gets you through it.
What De-Risking Is—and What It’s Not
De-risking is the process of shifting from aggressive, growth-focused investing to a more balanced approach as you approach or enter retirement.
It is about:
- Prioritizing income stability and preserving principal
- Building an income plan that clearly shows where your money will come from
- Aligning your investments with your timeline, goals, and risk tolerance
It is not about:
- Going 100% into cash or CDs
- Avoiding all market exposure
- Making emotional, reactive decisions during downturns
You don’t need to eliminate risk—you just need to manage it intentionally.
4 Major Risks to Address Before You Retire
1. Market Risk
Volatility is a normal part of investing, but it feels different when you’re living off your portfolio. A market drop early in retirement can do lasting damage if your plan isn’t structured to absorb it.
2. Sequence of Returns Risk
The order in which you experience investment returns matters when you’re withdrawing funds. Bad years early on can deplete your savings much faster than you might expect.
3. Inflation Risk
Your income needs to keep pace with rising costs over time. If your plan isn’t inflation-adjusted, you risk losing purchasing power as you age.
4. Longevity Risk
Living a long life is a gift—but it also means your money has to last longer. Your plan needs to account for income that could stretch 30 years or more.
It All Starts with an Income Plan
Here’s the reality: if you don’t know where your income will come from in retirement, you don’t have a plan—you have a guess.
An income plan shows exactly how you’ll replace your paycheck and maintain your lifestyle. Once that’s in place, we can look at how to invest the rest of your assets with clarity and purpose.
Some clients still maintain growth exposure in part of their portfolio—and that’s okay. But we don’t expose lifestyle-critical dollars to unnecessary risk. Instead, we find the right balance for you.
Your De-Risking Plan Should Be Personalized
There’s no one-size-fits-all formula. Your de-risking strategy should reflect:
- Your risk tolerance
- Your retirement timeline
- Your income needs
- Your values and goals
And just like life, your plan needs to be flexible. It should evolve as your needs, health, or priorities change.
If your current advisor only talks to you about investments—and not income, taxes, healthcare, or legacy planning—it may be time for a second opinion.
Let us help you explore the possibilities and create a plan that’s truly built around you.
Ready to start your Confident Retirement Journey?