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Investing Wisely in Your Golden Years: A Guide for Arizona Retirees

Retirement is a time to enjoy the fruits of your labor. But even after you have stopped working, it's important to make sure your money continues to work for you. Investing wisely can help you maintain your lifestyle, protect your nest egg, and even leave a legacy for your loved ones. Here’s a straightforward five-step guide to help you navigate investing after retirement.

Step 1: Revisit Your Financial Plan

Financial planning is not just for building wealth—it’s equally important during the years you’re spending it. The economic landscape, marked by events like the pandemic and market fluctuations, can impact your retirement portfolio. It is wise to sit down with your financial advisor to review your investment portfolio. Make sure your investment strategy aligns with your retirement goals and consider whether new investments could affect your retirement income.

Step 2: Understand and Manage Risk

Investing during retirement comes with different challenges than during your working years. While buying in a down market might seem appealing, retirees need to be cautious. Since you may need to access your funds sooner rather than later, your investments should be aligned with lower risk levels. This approach helps avoid potential losses from needing to sell investments during a market dip.

Step 3: Planning for Inflation in Retirement

Inflation in retirement can erode your purchasing power, making it essential to consider how it impacts your portfolio. Certain investments, like those in energy or consumer staples, may offer protection against rising inflation and potentially during a recession. However, once inflation starts to decline, you may need to shift your focus to investments that aren’t as sensitive to interest rates.

Step 4: Explore Potential Lifetime Income Investments

Retirees often turn to bonds for their perceived safety, but with current rates, bonds may not always keep up with inflation. An alternative to consider is a Fixed-Indexed Annuity (FIA). FIAs can provide returns linked to a market index like the S&P 500, while also protecting your principal. These annuities offer a potential lifetime income stream, providing added financial security during retirement.

Step 5: Consult with a Fiduciary Financial Advisor Near You

If you’re retired or nearing retirement and thinking about investing, now is the perfect time to meet with a fiduciary financial advisor. A fiduciary financial advisor acts in your best interest, providing personalized guidance and helping you make informed decisions that align with your unique retirement goals and circumstances. A tailored approach can help you maintain financial stability while pursuing growth opportunities.

In the context of financial advising, a fiduciary is a professional who is legally and ethically bound to act in the best interests of their clients. This means they must put their client's needs ahead of their own and avoid any conflicts of interest.

When choosing a financial advisor, especially for retirement planning, working with a fiduciary can provide peace of mind, knowing that the advice you receive is unbiased and tailored to your specific financial goals.

A financial advisor with a fiduciary duty provides this commentary and serves individuals and families across Arizona.

Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and J. Martin Wealth Management makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that J. Martin Wealth Management may link to are not reviewed in their entirety for accuracy and J. Martin Wealth Management assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from J. Martin Wealth Management. For more information about J. Martin Wealth Management, including our Form ADV brochures, please visit https://adviserinfo.sec.gov."

Wealth Watch Advisors, Inc. is an SEC-registered investment advisory firm. Registration does not imply a specific level of skill or training. The information above is for educational purposes only and is not personalized advice. All investments involve risk, including possible loss of principal. Before engaging our services, please review our Form ADV Part 2A and Part 3 (CRS) at www.wealthwatchadvisors.com.

The information I've included here is for illustrative and informational purposes only and should not be considered legal, tax, or investment advice. Investment advisory services are offered through Wealth Watch Advisors, Inc., an SEC-registered investment adviser. The firm transacts business only in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the Commission and does not imply that the adviser has attained a specific level of skill or ability. All investment strategies carry the potential for profit or loss. Investing involves risk, and no strategy can guarantee success or eliminate the possibility of loss. Neither Wealth Watch Advisors nor J. Martin Wealth Management, LLC, is endorsed by the Social Security Administration or any other governmental organization.