1330 Orange Ave., Ste 302
Coronado, CA 92118
Read financial tips and market updates in our weekly newsletter
Copyright © 2002 – 2023 Orion Capital Management LLC • Coronado, CA
Disclosure: Orion Capital Management LLC (“Orion”) is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC). The firm offers advisory services in the State of California and in other jurisdictions where registered or exempted. Registration does not imply a certain level of skill or training. The information on Orion’s website or in its distributed commentary shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons or entities of another jurisdiction unless otherwise permitted by statute. Orion’s individualized responses to consumers in a particular state in the rendering of personalized investment advice for compensation shall not be made without the firm first complying with jurisdiction requirements or pursuant to an applicable state exemption.
The information on Orion’s website or in its distributed commentary is not investment, tax, accounting or legal advice. Orion is not a tax advisor. For tax advice individuals should consult their CPA. This information is also not an offer or a solicitation of an offer to buy or sell any security, or to be construed as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon in the making of investment decisions. All content on this site is for informational purposes only, and nothing herein should be construed as an investment recommendation. Opinions expressed herein are solely those of Orion, unless otherwise specifically cited. Material presented is believed to be from reliable sources, but no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas described on Orion’s website or in its distributed commentary should be discussed in detail with an investor’s personal financial advisors and legal counsel prior to implementation.
Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested.
The information on Orion’s website or in its distributed commentary is provided “AS IS” and without warranties of any kind, either express or implied. To the fullest extent permissible pursuant to applicable laws, Orion Capital Management LLC disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose.
Testimonials or reviews on Orion’s website are from current clients. Orion does not compensate for reviews or testimonials and has no material conflicts with clients offering reviews.
Orion does not warrant that the information on Orion’s website or in its distributed commentary will be free from error. Your use of this information is at your sole risk. Under no circumstances shall Orion be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided on this site, even if Orion or an Orion authorized representative has been advised of the possibility of such damages. Information contained on this site should not be considered a solicitation to buy or an offer to sell any security, or a recommendation to buy or sell any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.
Schedule a quick introductory call with you and see if we would be a good fit for you.
Will the Four Horsemen Trample Your Retirement?
After decades of working and saving diligently, you are probably looking forward to a steady stream of income to fund an enjoyable and productive retirement. What many retirees do not realize, however, is that there are four key factors that could turn their dream retirement into an underfunded nightmare if they are not properly anticipated and addressed in their retirement plan.
We call these factors the Four Horsemen of Retirement.
The White Horseman. Longevity in and of itself is not a bad thing, of course, but this Horseman counts on you to fail to plan for a long life and thereby leave yourself vulnerable to running out of money in your later years. People are now living much longer in retirement than they did fifty years ago.
The Red Horseman. This Horseman is particularly devious, as he will make all the reasons to overspend seem logical and appealing, and therefore tempting. Additionally, this Horseman is stealthy; often you will not even know you are under his spell.
The Black Horseman. This Horseman has not reared his ugly head in some time, but rest assured, you want to be prepared when he shows up. Consider the 1970s, which had an annual inflation rate of approximately 7%. Talk about a massive loss of purchasing power. . .
The Pale Horseman. No one knows what their investment returns will be in the first few years after retirement (or in any years), but an overly aggressive portfolio coupled with a poor sequence of returns early on can do irreversible damage to your retirement. Look at the returns for U.S. stocks in 2000, 2001, 2003 and 2008. When this Horseman strikes, he often comes out of nowhere and hits particularly hard.
One of the best tricks these four villains play is to try to convince you they are just myths from a former time that are no longer relevant in today’s world. Ignore them at your peril, for they are real and are poised to visit your retirement plan.
If we wish to defeat the Four Horsemen, our first order of business is both acknowledging their existence and understanding who they are (Part I of the series). Next, we will delve deeper into each Horseman’s characteristics followed by the protective measures you can take to guard your assets (Part II of the series). However, it is important to understand there are no silver bullets in this battle, and measures taken to guard against one Horseman can leave you vulnerable to one or more of the others. Your own battle plan for generating reliable income in retirement is unique to your specific situation and tailored to your tolerances and needs. Lastly, we will explore some broader strategies that investors can employ to armor their assets against these dastardly foes (Part III of the series).
Will your retirement plan be ready to fend off the Four Horsemen?
Stay tuned for Part II of this series.
Don’t have a retirement income plan? Please click below to schedule a no obligation consultation.
Join Our list!
Join our email newsletter list to receive more market updates and financial articles like this one.
Markets Calm Amid Crosscurrents
Both stock and bond markets seem to be taking today’s many conflicting financial and political cross currents in stride, with
Fed’s Medicine is Working
The first quarter of 2023 featured plenty of drama in the markets, with the sudden failure of Silicon Valley Bank,
The Demise of Silicon Valley Bank
On Friday, Federal banking regulators placed Silicon Valley Bank (SIVB) into receivership to protect depositors and to prevent possible contagion
Jeff Rotherham, CFP®, MSAFP