Near retirement? Here’s how to keep your investments safe and growing
Nearing retirement is a critical phase in an investor’s life - mistakes and missed opportunities here could be very costly. Monitoring and control can help!
Truthifi Editors
Published
Dec 20, 2024
5 min read
Retirement is right around the corner, and you’ve worked hard to build your nest egg. But here’s the thing—a few wrong moves now could put your financial security at risk.
Market crashes, hidden fees, and poor investment choices can drain your savings faster than you think. That’s why having the right tools and a solid financial control system is critical.
So, how do you protect your investments while making sure they last? Keep reading because we’re about to break it all down.
Biggest threats to your retirement investments
First, let’s talk about what could go wrong. These are the top financial risks retirees face—and they’re not pretty:
✅ Market volatility – A sudden market dip could shrink your portfolio right when you need it most.
✅ Sequence of returns risk – If you withdraw money when the market is down, you could run out of funds faster than expected.
✅ Inflation – Rising costs can eat away at your purchasing power if your investments don’t keep up.
✅ Interest rate changes – If rates drop, your fixed-income investments (like bonds) might not provide enough cash flow.
✅ Healthcare costs – Medical expenses can be a financial shock if you’re not prepared.
✅ Outliving your money – Living longer is great—unless your money runs out before you do!
✅ High fees & hidden costs – Many investors don’t realize how much they’re losing to unnecessary fees.
If any of these risks sound scary, don’t worry—there’s a way to stay ahead.
Why the "nearing retirement" phase is so critical
The years leading up to retirement are arguably the most important financial phase of your life. Why? Because this is when you transition from building wealth to preserving it—and mistakes made during this time can have lasting consequences.
Here’s what makes this phase so critical:
🚨 Less time to recover from losses – If your portfolio takes a big hit now, you may not have enough working years left to rebuild it. A market downturn just before retirement could significantly reduce your future income.
💰 Shifting from accumulation to withdrawal – Up until now, your focus has been on growing your investments. But once you start withdrawing, the game changes—strategic withdrawals and risk management become key.
📊 Sequence of returns risk is highest – If you retire right before a market crash and start withdrawing money, you could drain your savings much faster than expected.
🩺 Health costs rise as you age – The older you get, the more you’re likely to spend on healthcare. Planning for medical and long-term care costs before retirement is crucial to avoid financial strain later.
📉 Inflation eats into your purchasing power – The money you’ve saved today may not go as far in 10 or 20 years. Investments must keep pace with inflation so your savings don’t lose value.
🏠 Lifestyle decisions become permanent – Whether you downsize, relocate, or choose to work part-time, the decisions you make now will shape your financial security for decades.
💡 What does this mean for you? If you’re within 5–10 years of retirement, the financial moves you make today will directly impact your quality of life in retirement. Now is the time to optimize your strategy, protect your assets, and ensure long-term stability.
Now, let’s go over exactly what you can do to protect your financial future.
What you can do about it
Planning for retirement isn’t just about saving—it’s about managing risks, optimizing investments, and making smart financial choices to ensure your wealth lasts. Here’s what you can do to stay on track:
1. Implement a financial control system with automated investment monitoring
Having complete visibility over your finances ensures that your investments are performing well and free from unnecessary fees and risks. Without proper monitoring, you might miss out on potential losses or overpay in fees.
Why this matters: If you’re not actively tracking your investments, you could be losing money without even realizing it.
Solution: Use platforms like Truthifi to set up real-time tracking, risk assessment, and fee detection.
2. Diversify your portfolio
Why this matters: A well-diversified portfolio protects you from major losses when the market fluctuates.
Solution: Include a mix of stocks, bonds, cash, and alternative assets for balanced growth.
3. Implement a smart withdrawal strategy
Why this matters: Poor withdrawal timing—like withdrawing during a market downturn—can rapidly deplete your savings.
Solution: Follow the 4% rule or adjust withdrawals based on market performance.
4. Maintain a cash reserve
Why this matters: Selling assets at a loss can permanently reduce your savings.
Solution: Keep 1–2 years' worth of expenses in cash or liquid assets for emergencies.
5. Consider annuities for income stability
Why this matters: Running out of money in your later years can be devastating.
Solution: Explore immediate or deferred annuities to supplement Social Security and pension income.
6. Plan for healthcare and long-term care costs
Why this matters: Unexpected healthcare costs can drain your savings quickly.
Solution: Consider Medicare supplement plans, long-term care insurance, and health savings accounts (HSAs).
7. Stay ahead of inflation with growth investments
Why this matters: Inflation erodes the real value of your savings.
Solution: Keep a portion of your portfolio in stocks or inflation-protected securities (like TIPS) to ensure your wealth grows over time.
8. Optimize your tax strategy
Why this matters: High taxes can take a big bite out of your retirement savings.
Solution: Work with a financial professional to use strategies like Roth IRA conversions, tax-efficient withdrawals, and minimizing required minimum distributions (RMDs).
9. Work with a financial advisor
Why this matters: Making financial decisions based on emotions or misinformation can be costly.
Solution: Partner with a fiduciary financial advisor who puts your best interests first.
How Truthifi gives you the upper hand
Having the right tools to track, analyze, and optimize your investments is crucial for a stress-free retirement. Truthifi provides powerful financial insights that help you stay in control. Here’s how:
1. The map – see your entire financial world in one place
Managing multiple accounts, investments, and assets can quickly become overwhelming. The Map feature consolidates your financial data from over 18,000 institutions into a single, organized dashboard. This allows you to see everything in one place, making it easier to track your progress, allocate assets wisely, and adjust your strategy as needed.
2. The global statement – get a clear, no-nonsense report on your wealth
Traditional account statements can be confusing, and many don't provide the full picture of your financial standing. The Global Statement simplifies this by compiling all your investment, banking, and retirement accounts into one easy-to-read report. It breaks down performance, highlights risks, and even uncovers hidden fees—helping you make informed financial decisions with confidence.
👉 See how The Global Statement works
3. The score – a simple number that tells you everything
How do you measure your financial health at a glance? The Truthifi Score provides a real-time financial rating based on your wealth, risk exposure, and performance. This number helps you quickly understand how well your portfolio is performing and whether you're on track for long-term stability. If your score drops, you know it’s time to adjust your investments or risk exposure.
4. Fee detection – stop losing money to hidden costs
Many investors don’t realize how much they’re losing to hidden fees—from advisor commissions to fund management costs. Truthifi’s fee detection tool scans your accounts and gives you a transparent breakdown of where your money is going. By identifying unnecessary fees, you can cut costs and keep more of your hard-earned savings working for you.
👉 Find out how much you're losing to fees
Final thoughts: protect your retirement, live with confidence
Retirement should be about enjoying life—not worrying about money.
📌 The next step? Get started today. The sooner you take control, the stronger your financial future will be.
👉 Explore Truthifi now
Retirement is right around the corner, and you’ve worked hard to build your nest egg. But here’s the thing—a few wrong moves now could put your financial security at risk.
Market crashes, hidden fees, and poor investment choices can drain your savings faster than you think. That’s why having the right tools and a solid financial control system is critical.
So, how do you protect your investments while making sure they last? Keep reading because we’re about to break it all down.
Biggest threats to your retirement investments
First, let’s talk about what could go wrong. These are the top financial risks retirees face—and they’re not pretty:
✅ Market volatility – A sudden market dip could shrink your portfolio right when you need it most.
✅ Sequence of returns risk – If you withdraw money when the market is down, you could run out of funds faster than expected.
✅ Inflation – Rising costs can eat away at your purchasing power if your investments don’t keep up.
✅ Interest rate changes – If rates drop, your fixed-income investments (like bonds) might not provide enough cash flow.
✅ Healthcare costs – Medical expenses can be a financial shock if you’re not prepared.
✅ Outliving your money – Living longer is great—unless your money runs out before you do!
✅ High fees & hidden costs – Many investors don’t realize how much they’re losing to unnecessary fees.
If any of these risks sound scary, don’t worry—there’s a way to stay ahead.
Why the "nearing retirement" phase is so critical
The years leading up to retirement are arguably the most important financial phase of your life. Why? Because this is when you transition from building wealth to preserving it—and mistakes made during this time can have lasting consequences.
Here’s what makes this phase so critical:
🚨 Less time to recover from losses – If your portfolio takes a big hit now, you may not have enough working years left to rebuild it. A market downturn just before retirement could significantly reduce your future income.
💰 Shifting from accumulation to withdrawal – Up until now, your focus has been on growing your investments. But once you start withdrawing, the game changes—strategic withdrawals and risk management become key.
📊 Sequence of returns risk is highest – If you retire right before a market crash and start withdrawing money, you could drain your savings much faster than expected.
🩺 Health costs rise as you age – The older you get, the more you’re likely to spend on healthcare. Planning for medical and long-term care costs before retirement is crucial to avoid financial strain later.
📉 Inflation eats into your purchasing power – The money you’ve saved today may not go as far in 10 or 20 years. Investments must keep pace with inflation so your savings don’t lose value.
🏠 Lifestyle decisions become permanent – Whether you downsize, relocate, or choose to work part-time, the decisions you make now will shape your financial security for decades.
💡 What does this mean for you? If you’re within 5–10 years of retirement, the financial moves you make today will directly impact your quality of life in retirement. Now is the time to optimize your strategy, protect your assets, and ensure long-term stability.
Now, let’s go over exactly what you can do to protect your financial future.
What you can do about it
Planning for retirement isn’t just about saving—it’s about managing risks, optimizing investments, and making smart financial choices to ensure your wealth lasts. Here’s what you can do to stay on track:
1. Implement a financial control system with automated investment monitoring
Having complete visibility over your finances ensures that your investments are performing well and free from unnecessary fees and risks. Without proper monitoring, you might miss out on potential losses or overpay in fees.
Why this matters: If you’re not actively tracking your investments, you could be losing money without even realizing it.
Solution: Use platforms like Truthifi to set up real-time tracking, risk assessment, and fee detection.
2. Diversify your portfolio
Why this matters: A well-diversified portfolio protects you from major losses when the market fluctuates.
Solution: Include a mix of stocks, bonds, cash, and alternative assets for balanced growth.
3. Implement a smart withdrawal strategy
Why this matters: Poor withdrawal timing—like withdrawing during a market downturn—can rapidly deplete your savings.
Solution: Follow the 4% rule or adjust withdrawals based on market performance.
4. Maintain a cash reserve
Why this matters: Selling assets at a loss can permanently reduce your savings.
Solution: Keep 1–2 years' worth of expenses in cash or liquid assets for emergencies.
5. Consider annuities for income stability
Why this matters: Running out of money in your later years can be devastating.
Solution: Explore immediate or deferred annuities to supplement Social Security and pension income.
6. Plan for healthcare and long-term care costs
Why this matters: Unexpected healthcare costs can drain your savings quickly.
Solution: Consider Medicare supplement plans, long-term care insurance, and health savings accounts (HSAs).
7. Stay ahead of inflation with growth investments
Why this matters: Inflation erodes the real value of your savings.
Solution: Keep a portion of your portfolio in stocks or inflation-protected securities (like TIPS) to ensure your wealth grows over time.
8. Optimize your tax strategy
Why this matters: High taxes can take a big bite out of your retirement savings.
Solution: Work with a financial professional to use strategies like Roth IRA conversions, tax-efficient withdrawals, and minimizing required minimum distributions (RMDs).
9. Work with a financial advisor
Why this matters: Making financial decisions based on emotions or misinformation can be costly.
Solution: Partner with a fiduciary financial advisor who puts your best interests first.
How Truthifi gives you the upper hand
Having the right tools to track, analyze, and optimize your investments is crucial for a stress-free retirement. Truthifi provides powerful financial insights that help you stay in control. Here’s how:
1. The map – see your entire financial world in one place
Managing multiple accounts, investments, and assets can quickly become overwhelming. The Map feature consolidates your financial data from over 18,000 institutions into a single, organized dashboard. This allows you to see everything in one place, making it easier to track your progress, allocate assets wisely, and adjust your strategy as needed.
2. The global statement – get a clear, no-nonsense report on your wealth
Traditional account statements can be confusing, and many don't provide the full picture of your financial standing. The Global Statement simplifies this by compiling all your investment, banking, and retirement accounts into one easy-to-read report. It breaks down performance, highlights risks, and even uncovers hidden fees—helping you make informed financial decisions with confidence.
👉 See how The Global Statement works
3. The score – a simple number that tells you everything
How do you measure your financial health at a glance? The Truthifi Score provides a real-time financial rating based on your wealth, risk exposure, and performance. This number helps you quickly understand how well your portfolio is performing and whether you're on track for long-term stability. If your score drops, you know it’s time to adjust your investments or risk exposure.
4. Fee detection – stop losing money to hidden costs
Many investors don’t realize how much they’re losing to hidden fees—from advisor commissions to fund management costs. Truthifi’s fee detection tool scans your accounts and gives you a transparent breakdown of where your money is going. By identifying unnecessary fees, you can cut costs and keep more of your hard-earned savings working for you.
👉 Find out how much you're losing to fees
Final thoughts: protect your retirement, live with confidence
Retirement should be about enjoying life—not worrying about money.
📌 The next step? Get started today. The sooner you take control, the stronger your financial future will be.
👉 Explore Truthifi now
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
Truthifi™ is the world’s first investment monitoring app. We're for investors who want clarity, advisors who want distinction, and an industry that needs trust.
Truthifi™ is the world’s first investment monitoring app. We're for investors who want clarity, advisors who want distinction, and an industry that needs trust.
Truthifi™ is the world’s first investment monitoring app. We're for investors who want clarity, advisors who want distinction, and an industry that needs trust.