My father and I had an amazing nine year run as successful entrepreneurs, building a two-time Inc. 500 company, then 2008 hit, and we suffered devastating losses. Within six months, we went from owning one of the 500 most successful, fastest growing private companies in the United States; to losing everything - and I mean EVERYTHING.
I was only 44 and I had time to recover. However, my father did not. He had just turned 65 years old, and in a blink of an eye he lost virtually everything he worked for his entire life. 40 years of work, sacrifice and savings - and in six months, it was all but gone. I understand, first hand, the devastating impact when losses are incurred... at the wrong time.
Fact: Diversification OF market risk, is not the same as Diversification FROM market risk. You can't spread risk, over more risk and magically come away with "safety".
Today's retirement income asset allocation strategy MUST include strong increasing income opportunities, capable of overcoming both long-term market downturns, and rising interest rate cycles.
Living into one's 90s is prevalent these days, and only serves to multiply risks 1 & 2. Conventional portfolio wealth management? Not on our watch!