Realistically Uncovering Portfolio Vulnerability

Realistically Uncovering Portfolio Vulnerability

The Prelude:

Realistically uncovering portfolio vulnerability is a bit like looking at yourself in the mirror. In a dimly lit room, you’re going to look like you walked out of a GQ Magazine. However, under the bright lights of your bathroom, you’re going to quickly get critical. Let’s unpack this a bit further.

The Bass Lines:

Which Mirror Are You Using To Assess Your Retirement Plan?

  • [1:00] – If you’re going to get critical, you need to examine your portfolio like you would yourself in your bathroom mirror. Under those bright lights, you start to notice little scratches and blemishes on your body. Similarly, it’s crucial you’re realistically uncovering portfolio vulnerability. You need to put it under the light in order to see the areas for improvement.

Generating Income: The “Bedroom Mirror” Approach.

  • [1:30] – Looking at your retirement plan from a standpoint of generating income is like looking at yourself in the bedroom mirror. Under those dim lights, you’re practically Gisele Bundchen or George Clooney respectively. Comparatively, when you take your net worth and divide it by the monthly income you’ll need in retirement, you’re not really looking at the details of your portfolio. It’s easy to say, “I’ve got two million dollars in my 401k, and I’ll withdraw four percent a year and be fine.” However, you’ve failed to think about the types of investments you have in your account and whether you’ll live off the interest they generate or the principal.

Realistically Uncovering Portfolio Vulnerability: Taking the “Bathroom Mirror” Approach.

  • [2:40] – We don’t want to squash your dreams, but when you walk in the bathroom, you quickly realize you’re not going to be on the cover of People Magazine anytime soon. Hopefully, rather than bemoaning your normalcy, you’ll begin to see yourself in a healthy, more realistic light. Realistically uncovering portfolio vulnerability means looking at the physical mechanics in your retirement plan. Furthermore, it means thinking through how you’re going to generate that income you’ve talked about needing.

The Crescendo:

The Encore:

The host: John Stillman – ContactBook – Call: 919-391-3446