by Dave Kutcher
We see it all the time- following periods of uncertainty in the investment markets things seem to have turned favorable again and sighs of relief can be heard across the land. We are thrilled for our clients that have recovered some of their prior losses, but if you think you can rest now and feel safe about what is ahead, don’t do it. This is no time for the weary. If you are approaching or at the precipice of your retirement distribution phase in life, you simply cannot let your guard down now.
There are trailing or lagging effects that are yet to come. Companies are re-evaluating their second half of the year forecasts. Profit expectations are being adjusted significantly lower than anticipated previously.
Rising interest rates are not going to settle down just yet – the Federal Reserve rate cuts aren’t coming in 2023 and rising rates will be thematic in the months ahead. This is going to create further strain on the markets in the coming months.
Artificial Intelligence (AI) progress has provided a false sense of security. If troubles come to the specific handful of giants that have helped rally the market most recently, future losses could be amplified for stocks as a larger market in the months ahead.
Analysts everywhere are holding cautious outlooks for the second half of 2023. While it may seem like your concerns are in the rearview mirror, don’t be surprised if you’ve already seen the best of what will happen in 2023.
We’ve said this many, many times … negative sequence of returns at the wrong time in your retirement can be devastating. This is no time to be weary and feel that the worst is already behind you. It is imperative you seek some help, remain conservative in your expectations, and seek out alternative ways to secure your retirement years ahead. Come visit with us and share with us what is important about money to you. Share with us what might keep you up at night.
There are ways to protect your principal without giving up opportunities for growth.
I am Dave Kutcher, a retired Marine Corp Captain and a managing principal at Frontier Retirement in Eagle River, AK. You can catch me on the radio every Saturday morning, “Retirement in the Last Frontier”, 8:30-9:30 on AM 650, Keni Radio. Frontier Retirement, 10928 Eagle River Road; Eagle River, AK 99577, (907) 795-7452.
