If you go strictly by what you read or watch on the news, then you know that the present economy is volatile. It goes up and down based on world events and domestic markets, but, all in all, it can’t be predicted. It’s hard to know where to invest your money, especially if you’re just about to retire and you want to live on your dividends for a long time. The basic reality is that your Social Security check every month is only a drop in the bucket. With your impending lump-sum distribution from your retirement plan or the estimated payments that you will receive from structured annuities, you still need financial planning. Fortunately, there’s good news for people in your shoes. Here, we look at a recent report on the outlook for retiring high-earners:

Forbes.com’s Andrew Biggs did a comparison of the median disposable income of U.S. retirees 65 and older with the median disposable incomes of counterparts in other developed countries. He found that the U.S. average income was $26,250, which places our retirees at #3 (behind retirees in Luxembourg and Norway). The reason for our high level of retiree disposable income compared to other countries is that we have low income taxes.

Biggs also noted that two-thirds of U.S. retirees pay no taxes on their retirement and payroll income. While you are in a higher income bracket perhaps than the median retirees discussed above, you know that your proposed income stacks up well. Now, you can sleep better at night. But, what do you do with that income? How do you make it grow?

Structure Your Investments Based on Current and Future Trends

The age-old advice still holds true. Don’t put all of your retirement eggs in one basket. Build a portfolio of retirement investments, even if that means moving your money around. It means that you don’t have to keep your money invested in the same mutual funds and other portfolio options you chose in your last job. Once you reach that official retirement age with your employer, the question is not really about which rollover to take. It’s about restructuring. You want a combination of high-yield, medium-yield, and low-yield investments, and your strategy should account for the risks associated with each investment type.

Consider Taking a Few Risks

While some high earners pursue a diverse investment strategy, recognizing that investments like capital bonds for government building projects pay off over the long run, they are afraid to take the biggest risks. At the retirement age, it is understandable that you don’t want to lose your retirement savings because you are foolish. Maybe you will start small and risk a small percentage of extra income. Tech startup investments are an example because they can generate double-digit returns (i.e. Instagram), but that isn’t always the case.

Go Tech: Portfolios With Angel Investments

Your portfolio could include some angel investments, for example, if you want to capitalize on tech. A recent Forbes report found the following: “On average, if executed strategically, venture investors should aim to achieve 10x returns on individual investments, but across a portfolio, an internal rate of return (IRR) of 25%.”

You Need Some Expert Guidance

I am here to help you understand how you can restructure your retirement income to include a range of sensible investments. We can build in the acceptable levels of risk for portions of your portfolio based on your needs. It’s never too late to adjust your financial planning strategy and to take advantage of new trends in the market, especially with double-digit returns possible. These can always be adjusted in the future.

For information on investing retirement wealth, please contact us today.