If you are retired or retiring soon, you probably have different financial needs than you did when you were younger, and will soon need to replace your wages. If you’re counting on your investments to do that for you, I believe your number one job is to protect your principal. After all, if you lose half your money in the next bear market, you probably won’t be able to live the retirement lifestyle you want.
The stock market is making history—and not the good kind. As of this writing, it looks as if the market will have its worst December since the Great Depression. This news could be even worse than it appears: The last three months are usually the strongest of the year—instead it appears that the S&P will end 2018 with a loss of 5.6%.
The market could rally, and I would not be surprised to see it do so for a short period of time.
When creating a trust, there are two basic ways to go: the revocable or the irrevocable trust. What’s the difference?
To begin with, “revocable” means “capable of being revoked” or “changeable.” If you create a revocable trust, you can change the terms and details whenever you want. And yes, “irrevocable “ means the opposite: once written, even you cannot change the trust. Both types of trusts have their place.
Flexibility is the obvious benefit to the revocable trust.