HUNTSVILLE, Ala. (WAFF) – There are numerous financial challenges when it comes to managing an investment portfolio in retirement. So, why is it so difficult? Our Gina Benitez recently sat down with financial expert Marshall Clay from The Welch Group to explain.
“Number one there’s this big psychological shift. And everyone goes through it, regardless of how much money they’ve accumulated. And it’s really this dynamic of going from earned income to relying solely on your portfolio,” said Clay.
Clay says it’s important to develop a game plan that you can gain confidence in over time.
“I think the second is just the cash flow challenge. Once you shift that earned income, the focus shifts to your portfolio,” said Clay.
He says a lot of people are experienced with putting money into their 401k’s but may not be as experienced taking it out.
“But when that money comes out, it’s taxed at a pretty high rate if you’re not careful. So, you’ve got to take into account income taxes and once you get beyond 65, there’s concerns around Medicare. So, the cash flow issue is a pretty big one. You want to get the cash to maintain your lifestyle, but you want to do it in a very tax efficient way,” said Clay.
And finally, Clay says it’s important to not take any major risks in retirement.
“So, if you make a huge mistake at 60, 65, or 70, it’s going to be very hard for you to overcome that. You may take an immediate pull back in your quality of life. So, I think there’s a number of reasons why investing in retirement is so difficult but those are the 3 mains one I see,” said Clay.
Click Here to Subscribe on YouTube: Watch the latest WAFF 48 news, sports & weather videos on our YouTube channel!
Copyright 2025 WAFF. All rights reserved.
