5 Ways to Protect Your Investments in Retirement with a Pension

So I know I talked about you may not need as much in this protection with your investment.

So I'd wanna talk about that specifically upfront here because understand your pension is part of that protection portfolio.

I've done some other videos on this.

A lot of people like to think of the 60-40 portfolio when it comes to retirement planning, and that may be true for most people, but if you have a pension, that may be different.

Now, I do wanna disclose though, if you do plan on taking that lump sum option or you're not gonna have a pension anymore because of that, then it could make more sense to have more in this protection side of the plan.

So that's where we oftentimes see that a lot of people do take that lump sum or even a partial lump sum to make this more important for those protection options.

But if you're gonna plan on just taking that monthly income pension, you ran the numbers, that's what makes more sense than anything, and you understand the pros and cons of doing so, then you may not need as much in protection.

Or maybe your pension doesn't even offer a lump sum option, that makes your decision easier, and this is also gonna allow you to not have to have as much in the protect side of your plan, if you desire.

Now, I do want to touch on another point of that, where you are in a position of financial freedom, which means you can do what you want, when you want, with who you want.

So not only from a spending capacity or a gifting or a giving to charity capacity, but also from a financial planning And so we see people that come to us who maybe don't have advisors and we tell them, hey, if you work with an advisor, you'll see a lot of value.

Vanguard has a study that if you work with an advisor, you do one to 3% better than doing it on your own.

But we tell them, you don't need to work with an advisor.

You don't have needs, you have wants.

And I did another video on this concept that because of the financial freedom you now find yourself in, you could afford to have more risk in your plan, or less risk in your plan.

So if you were the type of person that said, hey, I don't want as much protect.

I want it all in growth.

I wanna see home runs be hit.

I wanna see this thing continue to grow.

Great, you have the ability to do that.

So your pension can count towards a protection from an income standpoint.

So you're not gonna have to worry about what's called sequence of returns risk.

You're gonna be in a great, great spot moving forward.

But you also could say, hey, I've got a pension.

I've got all my income covered.

I don't need anything for my investments.