Do you know your risk exposure when it comes to retirement?

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Brian Decker, Owner, and Founder of Decker Retirement Planning joined Janeen on ABC4 Utah today to talk about how someone can KNOW how much Risk they should be taking.

According to Brian, there are two parts to this decision. One is mentally how much risk are they willing to accept and since Decker is a math-based company they offer a questionnaire that allows you to know, on a scale of 1-100, what level of risk you should be willing to accept.

The second part of this is how much risk are you actually taking already. What is the risk of your portfolio?  It is very common to have someone say that they are a level 40 risk but they own a portfolio that is a level 70 risk. That incompatibility will hurt you in the next market drop, especially if you are already retired. That is their Risk Score. 

You can visit Decker Retirement’s website to take your risk questionnaire and find out what your risk score is.

The next thing Brian tells us is how someone would know how MUCH money to put at Risk.

Since Decker Retirement is a math-based firm they run a spreadsheet for their clients called an Income plan or Retirement Distribution plan and many factors go into calculating how much money you should have at Risk. Including your age, your other income streams like Social Security, Rental income, pension, etc.  This allows them to look at the structure of your investments in IRA, 401K, and non-qualified investments to help clients know how MUCH to have at Risk.

We asked Brian to tell us the best place’s that retired people can go to get the highest returns for the least risk with their stock portfolios. Here is what he had to say:

“Our firm has searched the Wilshire database (the largest database for money managers in the world), the Morningstar database (the largest database for mutual funds in the world), and other databases for the “best” net of fee managers.” Below is the criteria:

  • The manager must have been through a “crash” so that we can see proven results in asset protection.
  • The manager must show a net of fee performance.
  • The manager must have actual, client account results. No hypothetical or back-tested numbers.

Then Decker took those results and removed the following:

  • Managers who are “closed” to new investors.
  • Hedge Funds, due to high risk and volatility.
  • Managers with account minimums of $1M or more.
  • High beta managers who do very well in the up markets but go down hard in the down markets.

What is left are the best 6 models and managers that we can find and all of them are computer, trend-following models. They made money in the 37% 2008 drop, in the 20% Q4 2018 drop, and the most recent 32% 5-week drop in Feb to March of last year.

Make sure you contact Brian and the team at Decker Retirement Planning to help you with your portfolio risk questions. Brian and Decker Retirement Planning will help you plan for your retirement future.

Visit their website here.

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