Many retirees keep managing their portfolio the way they did while saving. In retirement, though, you’re spending your money, not adding to it. In this episode of The Retirement Risk Show, host Dave Hall explains how to move from an asset-based portfolio to a purpose-driven portfolio, where each part of your money has a specific job.

Dave covers the difference between risk tolerance and risk capacity, and why a 60/40 portfolio can leave you selling in a down market. He then goes through the five purposes a retirement portfolio should serve:

Income: Social Security, pensions and guaranteed income
Reserves: 12 months of cash plus a 2–5 year bucket to guard against sequence of return risk
Protection: long-term care and legacy planning
Growth: money for later in retirement
Legacy: Roth accounts that pass to heirs tax-free

He also discusses tax coordination, Roth conversions, and what a planner adds beyond picking investments.

Learn more at retirementriskadvisors.com.

Investment advisory services offered through AlphaStar Capital Management, LLC, an SEC registered investment advisor. SEC registration does not constitute an endorsement of the firm by the SEC, nor does it indicate the adviser has attained a particular level of skill or ability. Fixed insurance products are offered through Retirement Risk Advisors, and AlphaStar Capital Management is not involved with the offer, recommendation, sale, or management of commission-based fixed insurance products. AlphaStar Capital Management and Retirement Risk Advisors are separate and independent entities. This is for informational purposes only and is not intended as legal, tax, or investment advice or a recommendation of any particular security, investment product, or investment strategy.

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