What’s the Best Way to Preserve Your Portfolio Before Retirement?

What’s the Best Way to Preserve Your Portfolio Before Retirement?

August 13, 2021

Retirement seems way off, until it’s not, and is the reason why wealth management is key to locking up your financial future. Think about a business Chief Financial Officer or CFO. Their main job is ensuring the company’s finances are taken care of, meaning they must consider overhead expenses, along with manufacturing, supply, building maintenance, shipping, etc. costs. They strike a balance with the budget and debt, to make certain the company stays afloat.

Now think about your family. You, or a member of your household, likely manages the budget. You have to think about mortgage or rent payments, utilities, debt, food, and discretionary expenses. If you don’t budget wisely and think about the future, your retirement savings could be in jeopardy. Read further to discover the best way to work toward your portfolio for a confident retirement.

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Determine Your Risk and Return

Saving money now could help you work toward a nice nest egg for your later years when you can travel to that exotic island you’ve always thought about. It’s important to find the right balance in managing your portfolio and is why you should consider a financial advisor. There are several things to consider when choosing between investment risk and return and could be what makes or breaks a retirement savings strategy.

It’s a good idea to determine your risk to return ratio your portfolio should bear. The risk-reward concept is a general trade-off underlying anything that generates return. Investing in something takes risk, particularly when investing money, and should be well-thought out. When you take a big risk, you expect a big return in the process, vice versa with a low risk, so it’s best to get some good advice with wealth management. 

Before making any investment, it’s crucial to know the amount of time you must keep your money invested. Calculating how much you need for retirement helps to determine the length of time you need to invest. If you’re in your forties, you may have upwards of 20-30 years to invest, as opposed to being in your fifties or sixties. If you’re younger, you can set up a nice retirement plan.

Before we delve into the best way to pursue your portfolio before retirement, ask yourself these four questions.

  1. How long should retirement last?
  2. How much should I expect to save for retirement?
  3. What sources of income do I expect to have?
  4. What investment strategies should I consider?

Here are some average answers to these questions that may help you prepare for the future and give you confidence.


Strategies for Managing Your Portfolio

There are many strategies to consider when managing your portfolio. You may already be implementing some of these, especially if you have a 401K attached to the company you work for or own. Before you start investing, though, consider setting aside a year’s worth of cash, which would cover retirement expenses, sans pensions, Social Security, annuities, investment income, or rental properties. Hold it in a safe, liquid account, such as an interest-bearing bank account, money market fund, or short-term certificate of deposit. (CD) This allows you to use it without being concerned with the market or a monthly paycheck. You can spend it and then replenish it throughout the year with funds from your invested portfolio. After, invest the rest of your portfolio wisely.

Following are the best strategies to help manage and preserve your portfolio and include a mix of investments that work well together harmoniously. 


  • Using retirement income funds, allows you to place capital in the fund that is then managed for you. A manger invests a minimum amount of money into an account and then allocates it across a portfolio of stocks and bonds. At this point, you can passively manage your account while a financial advisor secures profit for years to come. Your investment will have a larger return the earlier you start.

  • Purchasing rental real estate, before you go headfirst into real estate, it’s important to account for maintenance and any other unexpected costs that could crop up. First, Calculate all the costs involved and any potential expenses you could incur over the lifetime of owning the property. Furthermore, factor in vacancy rates that will come up. Once you assess the costs, delve more into the research of real estate owning and ensure you’re completely prepared. Read books on real estate ownership and talk to a someone who owns property to get their advice.

  • Investing in Dividends & Dividend Income Funds offers another strategy for wealth management and managing your portfolio. Watch out for bad economic times, however, as those same payouts could decrease or stop. Moreover, keep an eye on “qualified dividends,” meaning the dividends are taxed at a lower rate than normal income or interest income. Some publicly traded companies produce these dividends, but they may be best suited for non-retirement accounts, outside of an IRA, Roth IRA, or 401K as they wouldn’t be the most tax-efficient for long-term funds.

*Dividend payments are not guaranteed and may be reduced or eliminated at any time by the company.

  • Purchasing immediate annuities, which are a form of insurance instead of an investment, so they make for a good long-term retirement investment. It works by giving the annuity provider a lump sum of money with providing you with a set amount of income in certain periods. There’s usually a turnover of payments to you within 30 days.

*Fixed and variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 1/2 are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lost value.

  • Investing in mutual funds is another good way to increase your retirement portfolio. If you’re a new investor, exchange-traded funds (ETF) called index funds may be easier to understand. ETFs track entire markets or large sectors of the market such as technology, communication services, or entertainment.

                A diversified 401k or IRA holds investments in national and international stocks, bonds, and options. This diversity allows you to withstand the ebb and flow of the market.

*Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions and it may not achieve its investment objective.

ETFs trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF’s net asset value (NAV). Upon redemption, the value of the fund share may be worth more or less than their original cost. ETFs carry additional risk such as not being diversified, possible trading halts, and index tracking errors.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

  • Investing in alternatives, such as oil and gas leases, precious metals, derivatives (type of financial contract whose value depends on an underlying asset, or group of assets) can also provide a good stream of income for retirement. And because they reduce the overall volatility of your portfolio, they can generate better returns when the typical asset classes become idle.

Lean on Marvel Wealth Management for Help

Saving for retirement can be a daunting task, especially if you’re not familiar with investing. The experts at Marvel Wealth Management are here to ensure you get the help you need. Our mission includes supporting you in your retirement planning with the tools and advice that will assist you in making an informative decision that works best for you. We will consult with you on the best strategies we’ve learned over the years.

Reach out today to speak to one of our financial advisors at (321) 914-4714 or email us at Info@MarvelWM.com to schedule a meeting.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.