Retirement: What the Trump rally means for retirees – WBNews

Stocks soared after Election Day, propelled by visions of tax cuts, regulatory rollbacks and a government spending boom. And although it’s gratifying for investors to realize generous gains in such a short period of time, retirees are understandably nervous about making up any losses incurred when and if the market heads south. The key for retirees is to establish a portfolio that doesn’t cause anxiety about market fluctuations. Milad Taghehchian, of Pioneer Wealth Management Group, recommends that his clients have six to nine years’ worth of anticipated withdrawals invested conservatively, mostly in short-term and intermediate-term investment-grade bonds, with perhaps a touch of high-yielding junk bonds or emerging-markets debt. With your necessary expenses tucked away, the stock market’s ups and downs should be easier to stomach. Still, an old Wall Street adage rings a bell with many investors these days: No one ever went broke taking profits. The best way to take profits is by rebalancing your holdings, selling some of what has done the best and using the money to buy the laggards. Financial planner Greg Phelps, at Redrock Wealth Management in Las Vegas, rebalances clients’ holdings when they’ve breached the desired allocation by 20 percent to 25 percent in either direction. Phelps says he’s seeing sell triggers in clients’ small-cap stock holdings and in so-called value stocks — those that tend to trade at discounts. Funnel your profits into beaten-up areas that present good value, such as emerging-markets, health care and technology stocks. Although emerging markets started 2016 with…more detail