A retirement portfolio built around the life it must support
Investment Management for Retirees
Retirement changes the job of your portfolio. Your investments may need to fund current spending, manage near-term withdrawals and remain positioned for a retirement that could last decades.
Fairchild Capital’s comprehensive service combines financial planning and portfolio management. Investing involves risk, including possible loss of principal.
More than selecting investments
What does investment management for retirees involve?
Investment management for retirees aligns a household’s portfolio with its spending needs, other income, time horizon, taxes and ability to live through changing markets.
Before retirement, investment success may feel centered on accumulation. After retirement, the portfolio may also need to produce cash. That introduces questions about liquidity, withdrawal timing and what should be sold when spending money is needed.
At the same time, retirement is rarely a short-term goal. A portfolio may need to support years or decades of spending and unexpected costs. Holding too much risk can make near-term withdrawals more vulnerable to market declines. Holding too little may reduce the ability to keep pace with inflation and future needs.
The short answer
A retirement portfolio should balance today’s spending needs with tomorrow’s uncertainty. The allocation, cash reserves, withdrawals and tax decisions should work as one system and be reviewed as the household’s circumstances change.
A different stage requires a different lens
How retirement changes investment decisions
Cash must come from somewhere
The plan should identify which accounts and investments may fund spending and how available cash will be replenished.
Losses and withdrawals can overlap
Selling declining investments for spending may leave fewer assets available to participate in a later recovery.
The portfolio is only one piece
Social Security, pensions and other income influence how much the portfolio must provide and when withdrawals are needed.
Account choice affects cash flow
Using a taxable, tax-deferred or Roth account can create different tax consequences and change the investments that remain.
Your portfolio should have a job description.
Fairchild Capital can help connect investment decisions with the retirement income your household needs.
The pieces that work together
What a retirement-focused investment process may address
Asset allocation
Divide investments among categories such as stocks, bonds and cash based on the household’s goals, time horizon, income needs and ability to accept risk.
Diversification
Spread exposure across investments rather than relying excessively on one company, sector or asset type. Diversification can help manage risk but cannot prevent losses.
Liquidity
Maintain appropriate resources for near-term withdrawals and known expenses so every spending need does not require selling long-term holdings at the same moment.
Withdrawal coordination
Connect portfolio distributions with Social Security, pensions, cash reserves and spending. See Fairchild Capital’s retirement income planning page.
Tax considerations
Consider account type, cost basis, gains, losses and the character of income when implementing portfolio changes. Individual tax advice should be confirmed with a qualified tax professional.
Rebalancing
Review whether market movement has pushed the portfolio away from its intended allocation, then consider trades, cash flows and tax consequences before making changes.
Ongoing monitoring
Review the portfolio as markets, spending, goals and circumstances change. Monitoring does not prevent losses or guarantee that objectives will be achieved.
You may feel comfortable with market volatility but have limited ability to absorb a major decline while taking withdrawals. Or you may have the financial capacity for risk but dislike the uncertainty it creates. A suitable strategy considers both.
Plan before markets become stressful
Managing withdrawals through market changes
No investment strategy eliminates market risk. Retirement planning can, however, create a process for deciding how spending will be funded when markets are strong, weak or simply unpredictable.
That process may include cash reserves, short-term fixed-income holdings, flexible discretionary spending, rebalancing guidelines or decisions about which account supplies the next withdrawal. The appropriate structure depends on the household and should not rely on a single rule of thumb.
Income planning also matters. A household with Social Security and pension income covering most essential expenses may approach portfolio risk differently from one relying heavily on investments for monthly spending.
Examples include an unexpected spending increase, a material market decline, a change in retirement timing, a new pension election, a major tax-law change, a health event or the loss of a spouse.
The goal is not to predict every market move.
It is to build an investment process that remains connected to your plan when markets and life change.
Know which service you are choosing
How investment management works at Fairchild Capital
Fairchild Capital’s current Form CRS describes a comprehensive service combining financial planning and portfolio management. The firm provides continuous investment monitoring for clients in that service and takes discretionary authority in client accounts, subject to reasonable restrictions a client may impose.
The Form CRS also describes standalone financial planning. Fairchild Capital does not monitor investments or place trades for clients receiving only standalone planning. This distinction matters when deciding whether you want recommendations to implement yourself or an ongoing relationship that includes portfolio management.
Clarify the retirement plan
Understand spending, income, goals, time horizon, taxes and risks before determining what the portfolio must accomplish.
Review the current portfolio
Evaluate accounts, holdings, allocation, concentration, liquidity, costs and how the investments fit together across the household.
Develop the investment approach
Build a portfolio strategy intended to fit the financial plan, explaining its role, tradeoffs and important risks in plain language.
Implement and monitor
For comprehensive clients, manage the portfolio and review it as markets and the retirement plan change over time.
Fairchild Capital’s Form CRS states that the comprehensive service uses an asset-based fee charged quarterly in arrears and may have minimum fees. It reports no minimum account size or investment amount. Clients can also incur expenses such as fund, custody, brokerage, retirement-account or transaction-related costs that Fairchild Capital does not receive. Review the current Form CRS for complete information.
Related Fairchild Capital resources
Explore retirement planning, retirement income planning, tax planning in retirement and planning for Oregon PERS members.
Common questions
Investment management for retirees FAQs
What is investment management for retirees?
It is the ongoing process of aligning investments with a retiree’s spending, income sources, time horizon, taxes and capacity for risk. It can include allocation, diversification, liquidity, withdrawals, rebalancing and monitoring.
Should my portfolio change when I retire?
It may need to change as withdrawals, income needs and risk capacity change, but retirement does not automatically require one allocation. The appropriate strategy depends on spending, other income, time horizon, taxes and ability to tolerate losses.
How much cash should a retiree keep?
There is no universal amount. The decision may depend on near-term spending, dependable income, planned purchases, portfolio risk and personal comfort. Cash can provide flexibility but may have lower expected long-term returns than other investments.
Does diversification prevent investment losses?
No. Diversification spreads exposure among investments and may help manage concentration risk, but it cannot guarantee gains or prevent losses in declining markets.
How are portfolio withdrawals handled?
A retirement-focused process can coordinate withdrawals with spending, cash reserves, Social Security, pensions and taxes. The account and investments used may vary based on market conditions and the household’s broader plan.
Does Fairchild Capital continuously monitor investments?
According to its current Form CRS, Fairchild Capital provides continuous monitoring for clients in its comprehensive financial-planning and portfolio-management service. It does not monitor investments for standalone financial-planning clients.
Does Fairchild Capital make trades for clients?
Fairchild Capital’s current Form CRS states that the firm takes discretionary authority for comprehensive-service clients, subject to reasonable client restrictions. It does not place trades for standalone financial-planning clients.
How is Fairchild Capital paid for investment management?
The current Form CRS states that the comprehensive service charges a percentage-of-assets fee quarterly in arrears and may have minimum fees. Other investment-related expenses can also apply. Review current disclosures and ask for the fee applicable to your situation.
For additional investor education, review the SEC’s Investor.gov explanations of asset allocation and diversification.
Take the next step
Connect your investments to the retirement they need to support.
Schedule an introductory conversation about your portfolio, retirement plan and whether Fairchild Capital may be the right fit.
