Informed Decisions Independent Financial Planning & Money Podcast What to Expect If Markets fall by 30% in 2025: A Retirement Asset Comparison
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Jan 13, 2025 Explore the potential impact of a 30% market decline in 2025 on retirement planning. Discover how individuals in different stages of life can adapt their investment strategies during market volatility. Learn the importance of a flexible financial plan to maintain stability and security. The conversation highlights a 'guardrail' approach to help retirees navigate unpredictable market shifts with confidence.
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Accumulating Pension Assets
- If you are accumulating pension assets and are years away from retirement, hope for a market correction.
- Buying units at lower prices benefits long-term growth, despite short-term value drops.
Nearing Retirement with Annuity Plans
- If you are close to retirement and plan to buy an annuity, consider defensive assets.
- This mitigates the risk of a market downturn impacting your annuity purchase price.
Using an ARF
- If using an Approved Retirement Fund (ARF), your time horizon is much longer.
- Market corrections matter less with an ARF, except when taking the tax-free lump sum.