Keys to Managing Risk and Maximizing Retirement Income

Fort Myers, Florida – History reveals that when individuals invest and stay invested, they are likely to earn positive returns, especially in the long run. However, note that when markets start fluctuating, such as during the coronavirus pandemic, it might be tempting to make financial and economic decisions by making changes to an investment portfolio.

Note that people who base their important financial decisions on emotion usually end up purchasing stocks when the stock market is high and selling them when prices tumble. Ultimately, these investors have a more difficult time meeting their long-term financial goals.

And the changes and modifications in tax legislation coupled with the uncertainty and turbulence in the stock market can make maximizing retirement income more complex for individuals.

The professionals at Watkins Financial Group manage the complexities and nuances of their clients’ financial life, helping them in a fiduciary capacity so they can focus on the things that matter most to them. They tailor and customize each client’s personalized investment portfolio to reduce stock market risk, and satisfy numerous requirements, such as risk tolerance, priorities, goals, preferences, projected returns, investment experience, and timing for availability of funds.

The financial experts at Watkins Financial Group leverage tax reduction strategies to maximize their clients’ retirement income. The professionals at Watkins Financial Group are proud to serve average income investors who do not have as much capital to invest as high net worth individuals.

If a person holds a large amount of wealth in just one investment, it can pose a considerable risk. So, what can be done to manage the risk?

Asset Allocation

Appropriate and effective asset allocation is how a person weighs the investments in their portfolio in order to meet a specific financial objective. For example, if an investor’s goal is to pursue growth, and they are willing to take on stock market risk in order to reach that goal, they might decide to place as much as 70% of their assets in stocks and only 30% in bonds.

Before deciding how to divide the asset classes in any portfolio, it is important to make sure the investor knows their investment timeframe as well as the possible rewards and risks of each asset class.

Portfolio Diversification

Note that asset allocation and investment portfolio diversification often go hand in hand. And portfolio diversification entails selecting various investments within each asset class in order to reduce investment risk. Diversification is essential as it may help lower the effect of major market swings on an investor’s portfolio.

“Many individuals spend several years focusing on their jobs and careers and find that they’ve amassed a considerable amount of wealth that’s tied to just one asset. And it is at this point that our clients approach us asking what they can do in order to help preserve their wealth for the future. We use safe and effective investment strategies to minimize stock market risk so they can optimize their wealth,” said Michael Watkins, President, and Founder of Watkins Financial Group.

Portfolio Diversification

Michael Watkins Sr., President of Watkins Financial Group, is a Financial Professional dedicated to helping Southwest Florida residents prepare for retirement and secure their financial futures. He believes in taking a conservative approach, focusing on tax reduction and protecting retirees from devastating losses through contractual guarantees.

About Watkins Financial Group, LLC

Watkins Financial Group has helped create portfolios and programs to meet long-term financial goals. The firm starts by taking the time to understand each client’s goals and then explaining the different ways they can help. The professionals at Watkins analyze a person’s goals and compare them to their current portfolio. After that, they recommend a no-risk investment strategy to meet the client’s risk tolerance.

Media Contact
Company Name: Watkins Financial Group
Contact Person: Michael Watkins
Email: Send Email
City: Fort Myers
State: Florida
Country: United States