August 2020 Client Profile

Lori is retired and concerned about the fallout from the pandemic affecting her finances. What steps should she take to help protect her investments?

Start by evaluating your income needs and sources. If you rely heavily on investments for income, but your portfolio took a hit, you may have to reduce your spending and withdrawal rate for a while to prevent having too little in your later years.

On the flip side, if you have been taking required minimum distributions (RMDs), but do not need the income, you can skip it this year, because the CARES Act suspended the RMD requirement for 2020. That would leave you with more money invested and save the taxes you’d have to pay on the distribution amount.

Next, meet with your financial professional to review how recent market volatility has impacted your portfolio. Rebalance the asset allocation if necessary, to align with your risk tolerance, and short- and long-term needs and goals.

Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.