Leave Roller Coasters for the Amusement Parks, Not Your Retirement

August 10, 2016

Think back to the last time you were on a roller coaster. The high speeds, massive loops, and steep free-falls all got your adrenaline pumping.

However, as time wears on, our stomachs can’t handle those same ups and downs anymore. We lose our desire to seek out those thrills, and often find new endeavors, which sometimes come in the form of riding the kiddie train with the grandkids.

The same should be said for your retirement years. Assets that are relied upon to provide monthly income, typically cannot handle the ups and downs of the market. In addition, most retirees would rather not see their life savings go on a nail-biting thrill ride.

Many people reach a certain point in life when dependability is more important that the risk of “what could be.”

At Kemp Harvest Financial, it is common for us to see our client’s tolerance for risk reduce as they approach retirement – in most cases, this is a very good thing. The closer an individual is to taking withdrawals out of retirement accounts, the less time there may be to make that money back should the market make a sharp decline. It can take years for the market to fully recover, especially when looking at bear markets like the mortgage crisis in 2008.

However, everyone’s situation is different. As a person approaches retirement, they’ll need to consider how they will begin taking income and how much they’d like to spend monthly; just a few factors that need to be considered as their golden years’ approach.

With this in mind, having a retirement strategy in place, before you retire, is vital to account for additional risks beyond the market.

There are retirement products and strategies that can work alongside Social Security, pensions, and some types of life insurance to help maximize monthly and lifetime income as well as legacy plans.

If you are less than five years from retirement, you really should be creating a plan now. Your portfolio and its risk to the market is a very important piece of your future, and shouldn’t be overlooked.

Someone who gets nauseous easily should not ride a high-speed roller coaster with loops, corkscrews, and drops; nor should someone in or near retirement take too much investment risk. That could ruin their retirement years.

If you do not have a retirement plan, or are unsure if you need one, please contact Kemp Harvest Financial to meet with us. No one knows when the next major market decline will take place, but it’s important to be prepared!

Now is the time to make sure your retirement plans won’t be turned upside down.

If we at Kemp Harvest Financial Group can help you in any way, please feel free to contact us.


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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against a loss in periods of declining value.