Why Not Dipping Into Principal Can Be Dangerous

Retirees are often adverse to withdrawing more than the income the portfolio generates on an annual basis. While generating income is important for retirees, it is even more important to manage risk. Limiting volatility is the single most important aspect of a portfolio for a retiree, as it increases the probability that you will be able to afford the retirement lifestyle you have planned for. The below video does an excellent job explaining the additional risk involved in securities with higher yields.

http://news.morningstar.com/cover/videocenter.aspx?id=815896

Here at Mendel Money Management, we design retirement portfolios to balance income, risk, and volatility in order to increase your comfort during retirement.

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General Disclosure

This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This presentation may not be construed as investment advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and are subject to change without notice.
 
Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site. As with any investment strategy, there is potential for profit as well as the possibility of loss.  We do not guarantee any minimum level of investment performance or the success of any portfolio or investment strategy. All investments involve risk (the amount of which may vary significantly) and investment recommendations will not always be profitable. Past performance is not a guarantee of future results.

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