You Just Retired (Or Are About To). Now What?

July 8, 2025

New and recent retirees face significant "sequence-of-returns risk" when market downturns occur early in retirement, potentially shortening the lifespan of their savings. Financial experts recommend several protective strategies including adjusting spending during market declines, drawing income from safer assets rather than selling devalued stocks, and delaying Social Security benefits when advantageous. Additional recommendations include utilizing Treasury Inflation-Protected Securities (TIPS) to combat inflation and leveraging market volatility for tax-efficient Roth IRA conversions.

Who is affected

New retirees
Soon-to-be retirees
Surviving spouses (particularly regarding Social Security benefits)
Higher-earning spouses (in the context of Social Security claiming strategies)

What action is being taken

Financial experts are advising retirees on protective portfolio strategies
Some retirees are cutting back spending during market downturns
Some retirees are drawing income from safer assets like cash or bonds during market volatility
Some retirees are reinvesting dividends or interest into undervalued securities
Some retirees are converting traditional IRAs to Roth IRAs during market downturns

Why it matters

Market downturns early in retirement can significantly reduce the longevity of retirement savings
Proper planning and flexibility can help ensure savings last throughout retirement
Strategic Social Security claiming decisions can provide greater lifetime benefits
Inflation protection through TIPS helps preserve purchasing power
Tax-efficient strategies during market volatility can reduce future tax burdens

What's next

No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint