In this edition of the Portfolio Minute, we look at the balancing act performed in retirement of drawing income while sustaining your investment portfolio.
One of the biggest fears many retirees face, especially with advancements in medicine and life expectancies extending, is outliving their money. During a client’s working years their savings rate together with their portfolio rate of return is the key numbers on which they need to focus on in order to ensure that they are reaching their goals prior to retirement. But once retired, their attention will need to shift to their withdrawal rate. This is a key feature to portfolio management at CH, something that we refer to as the client’s “burn rate”.
Our partners at EdgePoint Wealth Management recently put together an excellent article explaining important points to consider when withdrawing from a portfolio in retirement. This 8-minute read can be found here.
If you have any questions or would like to discuss your income in retirement, your advisor would be happy to hear from you.
Devin Gorgchuck, Wealth Advisor
& Your CH Financial Team