You’ve worked hard to save for retirement. But with the ups and downs of the market and rising costs, it’s normal to worry if your financial future is secure. Sound familiar? You’re not alone. The good news is that you can take steps—and get the right support—to protect your hard-earned savings.
The Two Biggest Threats to Retirement Savings
Market Volatility
Imagine working for decades to build your wealth—only to lose 10%, 20%, or more in a market crash. Unfortunately, this isn’t just a worst-case scenario; it happens regularly. Here’s a look at the past six years:
2022: Rising interest rates caused by inflation led to a 20%+ drop in many assets, even a 25% loss in U.S. government bonds.
2020: Markets lost 20% in just three months as COVID-19 spread and panic set in.
2018: The S&P 500 fell 10% in the fourth quarter due to fears of economic slowdown, trade tensions, and rate hikes.
Inflation
While market crashes are sudden, inflation quietly reduces your purchasing power over time. Even though inflation has slowed, costs for groceries, energy, and insurance remain high. Prices rarely drop once they rise. According to the Truflation index, overall costs in the U.S. have risen 25.90% since January 2020. This means your money buys much less than it did just a few years ago.
For retirees and pre-retirees, these numbers reflect real risks to years of saving, your financial security, and your future income. At this stage, you don’t need to chase high returns—you need protection. A smart retirement plan anticipates these challenges and prepares for them.
Tips to Protect Your Retirement Savings
Here are three strategies that can help safeguard your nest egg:
Keep Two Years’ Worth of Living Expenses Accessible
Calculate your monthly expenses, and save two years’ worth in a liquid, easily accessible account. This ensures you can cover costs during a market downturn without selling investments at a loss.
Delay Social Security Until Age 70
Waiting to take Social Security increases your benefit by 8% annually until age 70. This boost also applies to future cost-of-living adjustments, helping your income keep pace with inflation. Additionally, it creates a higher level of inflation adjusted income for a surviving spouse.
Work as a Consultant in Retirement
Leverage your skills by consulting on your terms. Consulting provides extra income without a full-time commitment and keeps you mentally active. With earned income, you may also qualify to contribute to a Roth IRA.
By using these strategies—and others we recommend for your specific financial situation, you can create a stronger, more resilient retirement plan.
Why Big-Box Firms Might Not Be the Best Option
Large financial firms spend millions on ads, but that doesn’t mean they’re the best choice for managing your retirement funds. Consider these factors:
Limited Investment Options
Big firms often promote their own products, like illiquid investments with high commissions, which lock up your money and limit flexibility. Many don’t offer access to the $60 billion Buffered (downside protected) ETF marketplace because it’s difficult to train their sales teams on the nuances of these products. Instead, they profit from their own structured products and options trading—often at your expense.
Lack of Fiduciary Standards
Not all financial representatives are fiduciaries, meaning they aren’t always required to act in your best interest. Instead, they follow the lower “suitability” standard, which may lead to recommendations that benefit them more than you.
Why Smaller Firms Are Different
Smaller firms, like Oceanic Capital Management LLC, can provide benefits that larger firms can’t:
Access to Unique Products: Buffered ETFs, for example, let you stay invested while offering protection from major losses.
No Sales Pressure: Independent advisors typically charge a percentage of the assets they manage, aligning their success with yours.
A Fiduciary Commitment: At Oceanic Capital Management, we are Registered Investment Advisors and Certified Financial Planners (CFPs), legally and ethically obligated to prioritize your best interests.
Planning for a Secure Retirement
Retirement planning doesn’t have to be overwhelming, even with inflation and market volatility. By saving two years of expenses, delaying Social Security, and considering flexible income like consulting, you can better protect your savings. Choosing a smaller firm with fiduciary standards, no hidden agendas, and highly personalized service can also make a big difference.
You’ve worked hard for your retirement, and Oceanic Capital Management can help you make the most of it.