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Your retirement lifestyle largely depends on preserving the level of retirement income you have achieved.
You require a proactive advisor that understands how to manage investment and financial risks and present the best options available to you.
I will work with you as a personal pension fund consultant to target and build pension-type income you can rely on. Similar to pension funds, I focus extensively on risk management.
There are several strategies that I use to address the risks that could jeopardize your retirement lifestyle :
Avoid the Risk of Outliving your Money
The cornerstone of a secure income plan should incoporate guaranteed annuity income for life. Annuities can be tailored to your needs and can address inflation protection and estate concerns. Annuity rates increase with age.
Limit Erosion of Your Purchasing Power
Inflation reduces the value of a dollar to purchase goods over time. Equities (stocks) can have natural inflation hedges built into them. Fixed income products such as bonds, GICs and annuities can be hedged to inflation.
Reduce the Volatility of your Portfolio
The ups and downs of the market can damage your investment returns, not to say your emotional well-being over time. We can reduce this volatility with allocations to fixed income, quality dividend-paying investments, low volatility investment strategies, and alternative investments such as real estate and mortgage funds and/or stocks.
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Avoid Sequence of Return Risk
A major downturn as you start to draw on your investments could reduce your retirement income by 35% or more. A variable annuity can be used to lock in the growth in your funds including additional annual bonuses of up to 5%.
Reduce Risk of Underperformance
The risk of being overly invested with the wrong manager or type of investment at the wrong time can be costly. Diversification reduces that risk. Although diversification is often discussed it is not always properly practiced.
Replace Lost Income
Life insurance allows you to secure the income you need in case of death of a spouse or in the eventuality of illness. Insurance benefits are received free of tax and bypass probate (the will) to save money.
Insure Against Risk of Investment Loss
You insure your home, your car, your health, etc. Why not insure your retirement lifestyle? This can be accomplished with segregated funds.
By mitigating the unwarranted risks that could irreparably damage your retirement plans you can protect your wealth  while building the pension income you will need for your chosen lifestyle. A superior investment performance over a few years is of no value if it is lost in the down cycle just as you start to draw on your investments.
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