I wanted to offer a refresher to refocus our attention on the big picture of what we’re trying to accomplish together.
The big picture (from a financial perspective) is to maximize the probability of achieving your financial goals. Everything I do, along with the sacrifices you make when putting money away, is oriented towards that objective.
For most my clients, their primary financial goal is becoming financially independent in retirement or remaining financially independent throughout retirement.
The traditional rule-of-thumb for how a portfolio should be invested over time has been to gradually reduce risk throughout your life so that you start your career invested very aggressively but end a long, full life invested very conservatively.
I’ve previously addressed why this is such a dangerous rule-of-thumb here. Many people nearing retirement, or recently retired, should be invested quite conservatively around their retirement start date but then can afford to get MORE aggressive later in life. Continue reading “A Refresher…”