What are the benefits of a retirement portfolio?
A retirement portfolio can create a more stable basis for your future. The returns from your retirement portfolio will supplement your Social Security benefits, and can possibly prevent you from having to live on a fixed income.
How should you invest your retirement portfolio?
When working and saving, typically you invest your retirement portfolio in a way that gives it the potential to earn the highest returns possible while planning to ride out any big market downturns. Once retired, the goal changes. A different goal means a different portfolio.
What is the distribution phase of a retirement portfolio?
The most important element during the distribution phase of a retirement portfolio is the sustainability of income, not the growth of the portfolio like long term investors stress upon. A bad sequence of returns or high inflation can substantially decrease the life of a portfolio.