Cash Wedge Strategy
As you approach and enter retirement, it’s crucial to carefully manage your investment portfolio to ensure a secure financial future. While the common strategy of shifting to a conservative portfolio may seem prudent, it’s important to recognize the potential risks associated with underperforming investments and market volatility.
To safeguard your retirement income and protect your legacy, it’s vital to implement the Cash Wedge strategy in your portfolio. This approach involves setting aside enough cash in high-interest savings accounts or GICs to cover two to three years of living expenses, creating a cushion to avoid selling investments at a loss during market downturns. By doing so, retirees can continue to withdraw a steady income while giving their other investments the opportunity to recover.
The Cash Wedge strategy provides financial stability and peace of mind during retirement, allowing you to mitigate the effects of short-term downturns while still participating in market growth. It’s a smart and proactive way to ensure a reliable income stream and protect your assets for the long term.