With current advances in medical technology, Americans today are living longer than ever before. A retiree now has more time than they ever have expected to enjoy their post-career life — and more concerns that the nest egg they saved to fund it won’t last. In this episode, Goldstone Financial Group’s principal advisors, Anthony and Michael Pellegrino, sit down to discuss these fears and offer a few insights into how savvy professionals can leverage their assets to prepare for retirement.
The Pellegrinos begin the segment by outlining a few realities of personal finance today. Pensions, Anthony notes, have more or less fallen by the wayside. As employers step back, individuals need to take over the responsibility of ensuring that they have a steady income for the next twenty, thirty, or even forty years of their lives. Their spending, too, needs to be carefully considered — if retirees blow through too much of their savings too soon, they risk running out of the funds they need to pay their bills. If they spend too little, on the other hand, they may deprive themselves of a lifestyle they could have afforded.
As the pair explains, each individual has a different set of financial circumstances and goals. Some might be more risk-tolerant; others might be more risk-averse — and these preferences will play into the tailored financial plans that wealth managers create for their clients. However, Anthony Pellegrino stresses that regardless of a person’s financial nuances, every portfolio must be diversified beyond the typical set of stocks, bonds, and mutual funds. The careful diversification, he explains, will help mitigate some of the investment risks that some clients might otherwise face.
When the conversation turns to risk minimization, Michael Pellegrino takes the time to explain Goldstone Financial Group’s approach to what the principals refer to as Tactical Asset Management. Most people, Michael explains, are familiar with the “buy and hold” approach — that is, buying assets to hold through good and bad times alike. A TAM strategy is somewhat different: trained money managers use algorithms and their own experience to assess downturn risks, then adjust their investment strategy accordingly. If the risk is high, they can shift into a more defensive position – or change a client’s assets into cash to protect against severe fluctuations in the market.
Tactical asset management, Michael stresses, is not something that clients should attempt on their own. The best course of action would be to enlist the aid of high-level institutional money managers like the one Goldstone Financial Group employs to care for client accounts. These trained professionals work behind the scenes to track market movements and implement carefully-considered investment strategies on a client’s behalf.
Your retirement savings will fund your retirement, so don’t shortchange yourself. Consult a financial professional today to learn what you could be doing to achieve your long-term financial goals!