Retirement represents a major shift in how you think about your investments. After decades of focusing on accumulation, you now face the challenge of making your nest egg last while still growing enough to maintain your lifestyle.
Join REDW Wealth Management Live on June 3 to Learn More!
Want to discover specific strategies for balancing risk and reward in your retirement portfolio? Register now for our upcoming webinar, “Investing Wisely: Strategies for Post-Retirement Success” on Tuesday, June 3 at 10 am MT / 9 am PT.
In this session, Scott Birmingham CFP®, CDFA®, ChFC®, CLU®, CAP® and James R. Karberg, CFP® will share practical approaches for generating sustainable retirement income while protecting against both market volatility and inflation risk. Whether you’re newly retired or planning for the near future, this webinar will provide valuable insights tailored to your needs. Our panel of seasoned financial planning professionals will guide you through the complexities of retirement investing, ensuring your hard-earned savings continue to work for you.
The Conservative Trap
One of the most common misconceptions financial planners see among retirees is the belief that retirement portfolios must be extremely conservative. REDW Wealth Management Financial Planning Manager, Scott Birmingham notes that
“People tend to think they need to be overly conservative with their portfolio as they near retirement.” While reducing volatility is important, excessive caution creates its own significant risks.
When portfolios don’t grow enough to keep pace with inflation, purchasing power erodes over time. This silent threat becomes especially concerning when you consider that retirement might last 20-30 years – during which living expenses can inflate substantially.
Finding Balance in Today’s Market
The current economic environment makes thoughtful risk management more crucial than ever for retirees. With the potential for increasing inflation and market volatility, where you draw your short-term income from becomes a strategic decision with long-term implications.
Balancing growth opportunities with income security requires a different mindset than pre-retirement investing. Instead of simply growing assets, you’re now structuring your portfolio to provide a “retirement paycheck” – reliable income that sustains your lifestyle while maintaining growth potential.
Take Action Today
While comprehensive retirement risk management involves multiple strategies (which we’ll explore in depth during our upcoming webinar), here’s one immediate action step from Scott: Review your allocation across all accounts and reassess your current living expenses.
This initial assessment creates the foundation for more advanced risk management. For a more personalized approach, Scott recommends developing a financial plan that will assess your cash needs and possible time frame for drawing on accounts, potentially including an updated risk questionnaire and analysis of how those answers affect your financial projections.
© 2025 REDW Wealth LLC. This publication is intended for general informational purposes only and should not be construed as investment, financial, tax, or legal advice. Information and instruction shared in the article above do not guarantee outcomes, performance, or quality of services provided to REDW Wealth Management clients by REDW Wealth Management or its employees. Adherence to our fiduciary duty is not a guarantee of client satisfaction or any particular outcome. Advisory, Assurance, and Tax is offered through REDW LLC. Wealth Management is offered through REDW Wealth LLC.
