Market volatility can be a diagnostic tool, not just stressor for retirement planning

PHOENIX — War overseas and domestic inflation are among the factors of market volatility, but these stressors on retirement planning may actually help you straighten out your portfolio.

If you can accept weaknesses such as taking too many investment risks or having poorly diversified assets, you can hold firm against market swings.

Asset Preservation Wealth & Tax embraces that retirement doesn’t look like it did a generation ago, and company president Stewart Willis says estate planning is one aspect that often takes the back seat and shouldn’t.

“It’s really important to make sure that your beneficiaries are accurate,” Willis said on The Asset Preservation Hour radio show. “Assume (the beneficiaries list is) incorrect. It’s a good way to find mistakes.

“If you’ve gone that extra step of setting up an estate plan, OK, a living trust, this is really important. Make sure that the person that you have in charge, once you’re gone, your successor trustee, is still the person you want in charge.”

Asset Preservation Wealth & Tax has handled living trusts for more than 25 years, and Willis recommends it as a sensible complement to a will.

“It’s a very simple step,” Willis said of investing in a trust, which they sell for under $1,000. “Our commitment to our clients is we’ll be there for you. … But you need to have your affairs in order. And generally, the living trust makes it way easier to avoid the process of probate.”

Estate planning is a key cog in overall tax strategy, Willis added, as portfolio development carries with it more than just investment opportunities.

Why a diversified portfolio can be a lifesaver in retirement

Many investors believe big-name companies are less volatile based on past performance, but Willis cautioned that no singular methodology can consistently deliver.

This is why it cannot be overstated that spreading out your investments will act as a safeguard.

“When the market does well, (people are) all doing well. But when the market does bad, they get absolutely smoked,” Willis said.

“You’re willing to bet your entire life’s work that one human being is correct? We think that’s a tremendous concentration risk, which is why we use multiple money managers that come from multiple perspectives.”

Much like getting fresh sets of opinions, Asset Preservation Wealth & Tax stands upon integration, as taxes, investments, income and estate planning aren’t meant to be treated in different buckets.

Claim a free portfolio review by Asset Preservation Wealth & Tax online or call 877-573-8473 for more information.

The Asset Preservation Hour Podcast airs Sundays from 2 p.m. to 3 p.m. on 92.3 FM.

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