Empty Nesters and Retirees

Aged 50+, empty nesters are still working and have paid off their mortgage. After years of paying for their children and reducing debt they are finally ready to start enjoying some of that hard earned money.

They also enjoy spending money on travel and other luxuries they couldn’t afford earlier. As well as this, they provide moderate levels of financial support to their children. Their health and insurance is of great importance to them as, with age the likelihood of illness increases.

During the last market downturn a few years ago, retirees who had all or most of their assets in equities saw their nest egg shrink considerably. This is an absolute nightmare scenario for a retiree, and unfortunately, it was a reality for too many hard-working people.

Proper asset allocation is crucial for a successful long-term financial strategy and it is especially important for retirees. Figuring out what percentage of investments should be allocated to equities, bonds or guaranteed income takes a lot of personal investigation into each person’s risk tolerance and investment objectives.

During retirement, can you generate sufficient income without drawing down on your principal? What is the best way to generate income without taking excessive risks?.