Creating a Sustainable Retirement Lifestyle

Retirement should be a time to enjoy the rewards of your hard work, but one question often on the minds of most retirees: Will my money last?

For many retirees, the ultimate goal is creating a lifestyle that balances comfort and financial security without unnecessary stress. Yet, the financial world is unpredictable. Market volatility and rising costs disrupt even the best-laid plans. That’s why building a sustainable retirement lifestyle is vital. It’s not just about saving enough—it’s about managing your wealth to support your goals, no matter the uncertainties.

At Heritage Capital, we specialize in guiding affluent individuals through the complexities of realistic retirement planning and active portfolio management. With decades of expertise, we’re known for our proprietary investing strategies and unparalleled service.

This article highlights the challenges of building a sustainable retirement lifestyle, protecting your investments during market volatility, and how choosing the right financial advisor for active investing can be key to supporting your retirement.

How Market Volatility Challenges a Sustainable Retirement Lifestyle

Sharp downturns, unexpected corrections, and prolonged periods of economic uncertainty can significantly impact your portfolio’s value. This is especially concerning in the early years of retirement, when you may need to withdraw funds to support your lifestyle.

For instance, the sequence of return risk—the order in which investment returns occur—can further complicate matters, making timing as important as the returns themselves. During a market downturn, retirees who rely on withdrawals may be forced to sell investments at a loss. This reduces their overall balance and makes it harder to recover when markets eventually stabilize.

Historical examples highlight how sudden market declines can derail retirement plans.

• The Dotcom bubble, driven by speculative hype and soaring tech stock prices, fueled greed before bursting, leaving many with life-altering losses.
• The 2008 financial crisis, which lasted several years, impacted major market averages and disrupted credit markets, forcing some retirees to lock in losses as they withdrew funds to cover expenses.
• The pandemic in 2020 caused widespread fear and uncertainty, leading to mass selling and a sharp drop in the markets. However, the markets rebounded quickly, creating a seesaw effect that left many unprepared.

For retirees without a proactive management strategy, these dramatic shifts can have long-term consequences on financial security, making it very challenging to stay on track with their goals.

Heritage is a Connecticut financial planning firm with extensive experience managing investments during tough markets. We provide advice on retirement planning, Social Security in Connecticut, and investment protection to help you create a sustainable retirement lifestyle.

Benefits of Active Management in a Volatile Market

Active management provides a hands-on approach to navigating the challenges of market volatility. Unlike passive investing, which follows market indices, active management makes strategic changes based on research and real-time market conditions. This flexibility is vital for retirees who must protect their investments while pursuing long-term growth.

One of the key benefits of active management in a volatile market is outperformance potential. Skilled portfolio managers, like those at Heritage Capital, analyze market trends and adjust asset allocations seeking to minimize risk and seize opportunities. For example, they may diversify investments across sectors that tend to perform well during uncertain times or in undervalued securities.

Active managers can also employ hedging strategies to mitigate risk. These might include shifting to more stable assets, like bonds or cash, or using alternative investments that can provide a buffer against market downturns. This level of adaptability allows active management to provide investment protection that static, passive strategies often cannot.

Proactive management during volatile times can help safeguard wealth. While no one can predict the markets, preparing for ups and downs is an important key to maintaining a sustainable retirement lifestyle.

How To Find a Financial Advisor for Active Investing

Not all financial advisors are the same. In fact, many firms prioritize their own success over yours. While this approach benefits the firm’s bottom line, it may not serve your best interests. If the firm managing your money doesn’t take the time to know you personally, they can’t effectively manage risk on your behalf. This can lead to taking either too much—or too little—risk, potentially jeopardizing your financial well-being.

Finding the right financial advisor, especially one experienced in how to protect your investments during market volatility, could be the partner you’re looking for.

At Heritage Capital, we’re different. As an independent firm, we avoid the conflicts of interest often found at Wall Street firms. Our fee-only approach means no commissions or sales agendas, so we can genuinely recommend what’s best for you.

Paul Schatz, Founder and President of Heritage Capital, brings extensive experience in equities, fixed income, options, and futures and is renowned for his equity index models. With an AIF® designation, Paul and his team customize client portfolios using expertise in active management to help navigate market volatility, aligning investment strategies with individual goals and risk tolerance.

Many people leave financial advisors because they don’t feel adequately informed. Perhaps you meet with your advisor only once a year—or not at all. Heritage believes consistent communication is critical to maintaining a strong advisor-client relationship. You’ll always know where your portfolio stands and how we’re working for you.

Heritage Can Help You Create a Sustainable Retirement Lifestyle

At Heritage Capital, we pride ourselves on being retirement specialists, not generalists. As an award-winning personal investment management firm, we’re passionate about helping you thrive financially in retirement.

After years of building your net worth, it’s time for your money to start working hard for you as you approach or enter retirement.

With over 30 years of experience, we understand the challenges retirees face, from rising living costs to unpredictable markets. Our team works closely with you to craft strategies that provide investment protection and adapt to changing circumstances.

If you’re searching for a fee-only financial advisor in Connecticut who provides proactive communication, personalized service, and expertise in active investing, Heritage Capital is here to help.

Contact us today to learn how we can assist with your retirement planning.