How to Protect Your Wealth in Retirement

Stop holding on.

May 2020

The investment approach that got you to retirement is unlikely the right approach to get you through retirement. The financial assets you have to fund your retirement most likely came from savings and investment gains. It was the saving contributed to IRAs, 401(k)s, pension plans, whole life insurance, etc. that largely accounts for gains that accrued over time. It was likely a buy-and-hold diversified investing approach that weathered years of account drawdown and recovery. You had salary income. You had employer contributions. You had time on your side. That’s no longer the case. We believe it’s time to adjust.

To enhance your financial well being during retirement there is one thing that is most important: the avoidance of drawdowns.

You may have been told that there is no such thing as a free lunch, and that decent investment returns can’t be had without periodically experiencing serious losses. That is untrue. Reducing drawdowns increases returns and mitigates the permanent wealth impairment that is realized when you sell assets when markets are down to pay for your expenses.

As of this date, stocks and bonds are still at historically high levels, even considering the recent correction and partial recovery. Are you willing to bet your financial security when we appear to be heading into the worst post-war economic slowdown? If that assumption proves accurate, your retirement assets may be at risk of major losses that could take years to recover just to get back to even. If you don’t agree, it might be advisable to re-watch a few roadrunner cartoons and study the history of the major bear markets that recur periodically. After an 11-year bull market, another major bear market is overdue.

Trendhaven offers safe, liquid separate accounts deploying a proven tactical investment approach that has produced equity-like returns and a single digit maximum drawdown over more than 28 years. Go to to learn more.

Leave a Comment

Your email address will not be published. Required fields are marked *