When it comes to the stock market, what goes up must come down

Don't let your retirement savings strategy fall flat when the financial markets run out of steam. Have you considered guaranteed savings approaches such as whole life insurance and annuities?

A retirement savings strategy should have more dependability than a leaky hot air balloon.

By Bruce Schlappi

In Forbes, Kate Ashford reports that a strong majority of pre-retirees and retirees agree it’s important to avoid stock market losses as they approach retirement age. But “a surprising number of them are still focused primarily on investment growth.”

Forbes reports that a MassMutual Retirement Savings Risk Study found that both groups describe their investment strategy as seeking “aggressive” or “moderate” growth.

“It’s clear from our research that many retirees may be vulnerable to sudden market corrections and volatility, which can adversely impact savings,” said Tina Wilson, head of investment solutions innovation for MassMutual.

According to the study, retirees (and those planning to someday retire) continue putting their money in risk-oriented stock funds because those investments have been doing well. 

Not to burst a bubble, but ...
However, what goes up must come down. Business, and the stock market, operate in cycles. No one is smart enough to predict what will happen next. 

Believe me, I wish this weren’t the case. But it is. Survey the history of the market for just a few years and observe the boom and bust cycle.

“If you pull all of your money out during a boom, great! But if you happen to need it during a boost, well ...”

The good news: Your retirement savings strategy is not required to boom or bust. Through whole life and annuity plans, you can create guaranteed, safe-money options that allow you to put the “plan” back in financial planning.

There is more than one way to save for retirement. Ready to get started?

Bruce Schlappi is the principal of Schlappi Financial Group, a Blue Springs, Mo.-based company helping Kansas Citians plan for retirement through whole life and annuity-based savings plans and more.