Guardian Resources, a Minneapolis-area retirement and wealth management firm, is highlighting three questions people approaching retirement can use to evaluate their exposure to market risk as they transition from accumulating assets to generating retirement income.
MINNEAPOLIS, Minnesota, August 31, 2026–Clifton Ross, founder of Guardian Resources and host of Retire Right with Clifton Ross, recently discussed how investors can approach market risk differently as they enter retirement.
During a person’s working years, market declines may be easier to absorb because investors often have years or decades before they need the money. They may also continue contributing to retirement accounts while markets recover.
Retirement changes that equation.
“When you get into the retirement years, losses hurt more than gains help,” Ross explained. “You have a shorter period of time where you’re going to start needing those monies to create income for you.”
When retirees withdraw money from an account while investments are falling, they can lock in losses and leave fewer assets available to participate in a future market recovery.
Why Investment Losses Matter More in Retirement
One of the simplest ways to illustrate the impact of losses is to look at the mathematics of recovering from a major decline.
If a $100,000 portfolio loses 50%, its value falls to $50,000. A subsequent 50% gain does not restore the original balance. It brings the account to $75,000. Returning from $50,000 to $100,000 requires a 100% gain.
The problem can become even more significant when a retiree is simultaneously withdrawing money to pay for housing, healthcare, travel, taxes and other living expenses.
This creates what retirement planners commonly refer to as sequence-of-returns risk. Poor investment returns during the early years of retirement can have an outsized effect because the retiree may need to sell investments while their values are depressed.
Ross said that makes preparing for downside scenarios particularly important.
Instead of asking only how much a portfolio could earn, retirees should also consider what would happen if the market declined 20% or 30% shortly after retirement.
A Risk Analysis Can Help Retirees Understand Their Exposure
Ross compares the process to the stress tests used to evaluate large financial institutions.
The objective is not necessarily to eliminate investment risk. Instead, retirees should understand how much risk they currently have and determine whether that exposure is appropriate for their goals, income requirements and time horizon.
Investors can begin by taking inventory of their financial accounts, including:
- Checking and savings accounts
- Money market accounts
- Certificates of deposit
- 401(k) accounts
- Traditional and Roth IRAs
- Brokerage accounts
- Annuities
- Pension benefits
- Other retirement assets
From there, retirees can evaluate how much money is exposed to market volatility and how much is positioned for liquidity or stability.
They can also review how their invested assets are divided between stocks, bonds and other holdings.
An allocation that made sense during an investor’s accumulation years may no longer be appropriate when those same assets are expected to produce retirement income.
A Three-Bucket Strategy Can Separate Short- and Long-Term Needs
One strategy Ross discusses with retirees is dividing assets according to when the money is likely to be needed.
The first bucket contains short-term money. This can include emergency reserves, monthly cash-flow needs and expenses expected within the next several years. Because the money may be needed soon, liquidity and stability are typically priorities.
The second bucket contains mid-term assets. These funds may not be needed immediately and may be able to accept moderate investment risk while still limiting exposure to significant volatility.
The third bucket contains long-term assets that may not be needed for seven, 10 or more years. With a longer time horizon, a retiree may be able to accept greater market exposure in pursuit of long-term growth.
The strategy allows investors to distinguish between money needed for current living expenses and money that may remain invested through future market cycles.
“If I need these dollars for income, it means I need these dollars for income,” Ross said. “I’m going to be a little bit more thoughtful about how I am preserving those dollars.”
Investment Risk Is Only One Part of Retirement Planning
Reducing portfolio risk does not necessarily mean eliminating stocks or moving an entire retirement portfolio into cash.
Retirees still face inflation, rising healthcare expenses, taxes and the possibility of living several decades after leaving the workforce.
Investment risk is only one component of retirement planning. Ross said retirees should also consider retirement income, taxes, healthcare, Social Security, Medicare, estate planning and legacy goals when evaluating their overall financial strategy.
Ross emphasized that retirement strategies should reflect the individual rather than rely on a one-size-fits-all investment allocation.
“No two people are alike,” Ross said. “No two retirement plans are alike either.”
A retiree who wants to travel extensively may have different cash-flow requirements than someone supporting adult children, caring for an aging parent or planning a substantial charitable legacy.
Three Steps Retirees Can Take Today
Ross recommends that people approaching retirement begin with three questions:
- How much of my money is exposed to market risk versus positioned for safety and liquidity?
- How are my market-based investments allocated between stocks, bonds and other assets?
- How much of my portfolio will I actually need to produce retirement income?
Answering those questions can provide retirees with a clearer picture of whether their current investments align with the retirement they are preparing to fund.
For retirees concerned about market volatility, the goal is not to predict the next downturn. It is to build a financial strategy that can account for downturns whenever they occur.
About Guardian Resources
Guardian Resources provides retirement and wealth management guidance to individuals and families in the Minneapolis area. The firm’s Retire Right Roadmap addresses areas including investment risk, retirement income, tax planning, healthcare considerations, Social Security, Medicare, estate planning and legacy goals.
For more information about Guardian Resources and its retirement planning services, visit https://myguardianresources.com/wealth-management-minneapolis/
Guardian Capital Management, LLC offers investment advice through Belpointe Asset Management, LLC, an investment adviser registered with the U.S. Securities and Exchange Commission (SEC) located at 500 Damonte Ranch Parkway, Building 700, Unit 700, Reno, NV 89521.
Media Contact
Tanner McCarron
DYAD Marketing
info@dyadmarketing.com
Contact Information
Guardian Resources – Minneapolis Financial Advisors & Wealth Management
10900 Wayzata Blvd, Suite 200
Minnetonka, MN 55305
952-746-1555
Media gallery
