The $1M Income Portfolio

Adam Pukalo |

Everyone knows the stock market is volatile. How can you position your retirement portfolio to weather the storm? On average, a bear market lasts 18 months when there is a recession, according to LPL research. 

The shortest ever was in 1990. Markets are now starting to look weaker coming into the seasonally weak period from May 6th to Oct 27th.  

The biggest thing I talk to clients about is their objectives.

If you are wanting a 100% guaranteed return, then you have to buy a GIC, which would give you a return of 2% approximately for one year. When you factor inflation into your plan a GIC return won’t help your money grow throughout retirement. 

I’ve created an income portfolio for clients that is medium risk and creates a significant amount more of monthly income than GIC's.

For example, on a $1 million portfolio I can generate approximately $60,000 just in income that can be withdrawn from the portfolio without touching the principal. 

Overall, you can’t control the stock market fluctuations, but you can control your retirement plan.