Ukrainian Conflict! What To Do With Your Retirement Money Ep. 91

Given the level of economic uncertainty we are experiencing this year you may be wondering if there is a better way to handle your retirement. Below, I’ll share with you how we are helping our clients.

When it comes to making sure our retirement plans are in order there seems to be a lot of people asking, “Is there a better way?” The volatility level in the markets ratcheted up this past week as Russia began its assault on Ukraine.

The timing of Vladimir Putin’s attacks seems to eerily coincide with our government’s stated timeline of increasing interest rates and ending the economic stimulus plans that began when COVID began in 2020. The new war further complicates our government’s ability to rein in inflationary pressure.

Our reduction on monetary easing is one of the leading reasons for the correction territory markets are in now. We were expecting market gyrations to continue in March before the conflict arose.

The question now becomes how will the Federal Reserve move with the Russian / Ukrainian uncertainty? The head of the Fed will have eyes directed on him as he testifies before Congress twice this week.

When it comes to timing the market or making predictions about what may happen, we should exercise caution in listening or following advice like this. But what our clients can rest on in their retirement plan is that we have different buckets performing different functions. 

In retirement we advise using your money in the market as a long-term seldom touched resource that is eventually used to replenish your income bucket. Time in the market is the leading indicator of success when it comes to being in the market.

What we are trying to avoid is tapping into positions that are depressed due to market losses. If your plan has you using your money that is down, you run the risk of this bucket running out sooner than it otherwise would.

We design an income bucket to help our clients establish a method of creating retirement income. This bucket productively grows their money, and they also have the ability to know it will be there and ready for them to draw it down over time. With our process our goal is for our clients to be insulated when news of war starting or a bombing or black swan event occurs.

It’s fulfilling helping people ensure their retirement planning house is in good order. If you have a question about something I’ve covered here or would like to discuss your situation, please call us at 864.641.7955.

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