Do you know how to measure the strength of your retirement plan to see if it could weather the storm if there is a downturn in the economy? Financial professionals Joe Anderson and Alan Clopine show you how to stress-test your portfolio and give you ways to regain your financial fitness if your plan doesn’t hold up.
Important Points:
(01:13) – Recession and Health Worry
(02:32) – Stress-Test Your Retirement Plan
- Run a Baseline
- Stress-Test: Explore the Extremes
- Assess Weaknesses
- Improve Your Financial Fitness
(04:27) – Your Retirement Baseline
(07:02) – Sequence of Returns
(09:40) – Revised Retirement Baseline
(13:13) – Stress-Testing Your Retirement Plan
- Assume 20% Retirement Investment Decline
- Increase Your Retirement Expenses By 15%
- Assume You Have Large One-Time Expenses
- Future Home Value = 40% Less than Current Value
- Assume You Must Retire Early
(19:00) – Plan B: Improve Your Financial Fitness
(21:14) – Ask the Experts
(24:17) – Pure Takeaway: Stress-Test Your Retirement Plan
- Run Your Retirement Baseline
- Explore the Extremes
- Adjust For Weaknesses
- Build in Contingency Plans
