Strategies for Managing Financial Risk in Market Downturns

10. Longevity Risk

The major concern that many retirees face is outliving their nest egg. No one wants to find themselves in a situation of needing to rely on family, friends or charity.

Strategy to consider: Mitigating longevity risk and ensuring you don’t run out of money requires a multipronged approach. This includes saving into tax-advantaged retirement accounts from every paycheck, delaying Social Security, working longer, considering guaranteed income through an annuity, buying long-term care insurance and evaluating the most cost-effective place to retire. None of these suggestions is easy, and some require planning for years in advance.

However, their combined impact can help you live a dignified retirement without having to worry about spending down your funds.

During challenging markets, various flaws in our financial plan may come to light. Many missteps stem from a failure to assess risk or improperly classifying your own risk appetite.

While these oversights are painful to discover, proactively addressing them can help protect your finances during the next market downturn. More important, it will increase the probability of achieving your financial goals.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Shenkman Wealth Management is not affiliated with Kestra IS or Kestra AS. Investor Disclosures: https://www.kesstrafinancial.com/disclosures (opens in new tab)

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC (opens in new tab) or with FINRA (opens in new tab).

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