Written By: Marissa Waldron, Financial Advisor

Last year was a year of “worsts” for our economy. Inflation was (is) high, the S&P 500 lost almost 20%, even the bond market logged its worst year on record! Many new or soon-to-be retirees are wondering “How can I stay retired? What am I supposed to do to make sure I won’t run out of money?” And those concerns aren’t going away so far in 2023 with new concerns about interest rates, inflation, and bank failures.

The risks for new retirees may be higher as account values will go down even faster when retirees start spending from their savings, on top of poor performance in their investments. Most retirees need their savings to last a long time and might not be eligible for Social Security yet. It’s critical to get your investment allocation right so that you have investments that will keep up with inflation over time, but also other investments focused on preservation. That way, your income doesn’t have to take a cut when the market does. 

For new retirees who are worried about losses in their retirement savings and trying to find a way to recover from financial losses, possibilities include:

• Turn to options outside of your retirement accounts for income, such as cash value of life insurance or savings in your bank account. 
• Go back to work. Earning a paycheck will allow you to leave your retirement accounts untouched so that you can build your savings again.
• Spend less.

So far in 2023 markets have been recovering and consumer interest rates are relatively low – both positive signs. The bottom line is: don’t panic. Seek a second opinion from a qualified retirement professional who can help you analyze your situation and determine the most appropriate course of action. 

Say What?

Here are some of the most searched-for financial questions:

• What is a good credit score?
• How many credit cards should I have?
• What is compound interest? 
• How much income to file taxes?
• How do personal loans work? 

This week in history

1917 – The first woman elected to serve in Congress, Jeannette Rankin, took office. 

1968 (55 years ago) – Dr. Martin Luther King, Jr. was assassinated.

1973 (50 years ago) – The World Trade Center in New York City officially opened. At the time it was the world’s tallest building.  

2005 – Pope John Paul II died. 

If you have any questions, we’d love to chat! Call us at 844-CARLSON (227-5766) today!