When you’re saving for retirement, the goal is clear: grow your wealth. But as you near retirement, the strategy needs to shift. At this stage, it’s not just about how much you can earn — it’s about how much you can keep.
Market volatility, hidden fees, and aggressive investment allocations can all chip away at the money you’ve worked so hard to build. That’s why managing risk becomes just as important as seeking returns.
Why Managing Risk Matters More Than Chasing Returns
Many investors carry the same portfolio into retirement that they used during their working years. But without steady income and time on your side, even a modest market downturn can have lasting consequences.
At Financial Services of America, we’ve seen many pre-retirees and new retirees assume their portfolios are “safe enough” — only to discover they’re exposed to more risk than they thought.
The “Retirement Red Zone” — A Decade That Matters
The five years before and after you retire are often called the Retirement Red Zone. During this time, you’re not making regular contributions, and you may begin drawing income. A major market dip can dramatically alter the trajectory of your savings.
Without the ability to recover through earnings or time, the impact of losses is magnified.
Don’t Count on a Continuously Rising Market
While recent markets have seen periods of steady growth, downturns are part of every long-term cycle. And history shows that markets tend to fall faster than they rise.
Imagine retiring just as the market drops 30–40%. You’d likely have to withdraw from your accounts at the same time they’re losing value — which could quickly deplete your savings.
Know How Much Risk You’re Really Taking
Most people feel they can tolerate a 10% loss — but few realize their portfolios might be positioned to lose far more. Without a clear, risk-adjusted strategy, your investments could be working against your goals.
Understanding what level of risk you’re actually exposed to is key to making informed, confident decisions about your retirement income.
Don’t Let Fees Go Unnoticed
Beyond market fluctuations, hidden fees are another way your savings can slowly erode over time.
Even when investors believe they’re paying around 1% in fees, the real number is often closer to 3–4% once fund expenses, advisory fees, and trading costs are included. Over the course of retirement, this can quietly cost hundreds of thousands of dollars.
Prepare Before the Storm Hits
There’s a story of a farmhand who told a farmer, “I can sleep when the wind blows.” When a storm rolled in, the farmer found everything secured — because the farmhand had prepared in advance.
The same idea applies to retirement planning. By reducing risk and having a strategy built to withstand market changes, you can approach your future with greater clarity and confidence — no matter what happens next.
Now Is the Time to Reassess
If you’re within a decade of retirement, now is the time to make adjustments. You don’t want to wait until the market turns to find out your plan wasn’t ready.
At Financial Services of America, we help clients build personalized strategies designed to reduce risk, manage fees, and align their investments with long-term income needs.
Next steps
As you get closer to retirement, the decisions you make today can have a lasting impact on your financial future. Instead of reacting to market swings or headlines, focus on strategies designed to reduce risk and preserve what you’ve built.
At Financial Services of America, we help individuals and couples nearing retirement develop personalized strategies that aim to minimize market exposure, reduce investment fees, and create steady, reliable income streams.
Understanding how risk, taxes, healthcare costs, and income sources all work together is a key part of building a retirement plan that’s both stable and sustainable.
Whether you’re five years away from retirement or already there, it’s never too early — or too late — to start reducing unnecessary risk. Let’s create a retirement plan that helps you feel confident about your future.
Disclaimer
Insurance products are offered through the insurance business Financial Services of America (FSA). Financial Services of America (FSA) is also a financial services practice that offers securities products and services through AE Financial Services, LLC (AEFS), member FINRA/SIPC. Financial Services of America (FSA) is also an investment advisory practice that offers investment advisory products and services through FSA Advisors (FSAA), a Registered Investment Advisor. AEFS and FSAA do not offer insurance products. The insurance products offered by Financial Services of America (FSA) are not subject to regulatory requirements and standards of care applicable to registered representatives and are not subject to investment advisory requirements. AEFS, FSAA and FSA are not affiliated companies. Please remember that converting an employer plan account to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA. 3776535-8/24