Of course you should save for retirement. But as a firm that specializes in retirement planning, we believe that saving by itself isn’t enough. We also believe that if you’re over 50, you shouldn’t take the risks you did when you were younger. Your retirement planning needs to protect your principal.
That’s why Retirement Planners of America follows an Invest and Protect strategy: to take advantage of unlimited upside when the market is good and protect your savings when it’s not.
Too many people learned the importance of investment protection during the Great Recession. People near retirement were especially hard hit.
And though thankfully recessions don’t happen often, bear markets typically occur every three years—which means we’re past due. In fact, we believe we’re in a risky period right now: Our Invest and Protect strategy sounded the alarm to get out of equities on December 17, 2018.
If you suffer a big loss during a bear market when you’re near retirement, you might have to delay it. If you’re retired and living on your investments, you may have to drastically cut your standard of living or go back to work—or both.
It’s that risk that guides our belief that proper retirement planning is a two-part process: Save for retirement, then protect your investments.