Why the Risk You Took in Your 40s Could Hurt You in Your 60s
When you were in your 40s, investment risk looked very different.
You had decades of paychecks ahead.
Contributions were flowing into your 403(b) every two weeks.
Market declines were uncomfortable, but rarely dangerous.
There was time to recover.
In retirement, the game changes.
You no longer have a paycheck covering expenses. Instead of adding to your accounts, you are taking money out. That shift makes certain types of risk far more damaging than they ever were during your working years.
The Risk Most People Do Not See Coming
One of the biggest threats to retirement success is something called sequence of returns risk.
Here is what that means in practical terms.
If markets decline early in retirement while you are taking withdrawals at the same time, you are forced to sell assets at lower prices. Those losses become permanent because the money you withdrew is no longer there to recover.
Even if markets rebound later, your account balance may not. The damage has already been done.
Over time, this can shorten the life of your portfolio and increase the risk of running out of money.
This risk is mostly invisible while you are still working. It becomes very real the moment your portfolio has to provide income.
Why Retirement Requires a Different Investment Approach
The right investment strategy in retirement is not about chasing the highest returns. It is about building a portfolio that can support income reliably while still keeping up with inflation.
A retirement-ready plan helps you:
Understand how much risk is appropriate for this stage of life
Protect near-term spending with more stable assets
Maintain enough growth to support a long retirement
Avoid emotional decisions during market volatility
Without a plan, people often swing between extremes. Some stay too aggressive and feel constant stress. Others become overly conservative and quietly erode their long-term security.
Neither path supports a confident retirement.
How Guidance Helps During the Transition
If you are approaching retirement after decades of saving in your TIAA 403(b), you have already done a great deal right. The next step is making sure your investments align with how you plan to live in retirement.
A fiduciary advisor can help you:
Align your investments with your income needs
Reduce unnecessary taxes along the way
Coordinate 403(b) and IRA withdrawals with Social Security
Prepare for Required Minimum Distributions
Manage volatility in a way that protects your lifestyle
The goal is not to eliminate risk entirely. It is to take the right risks at the right time.
Final Thought
The investment risk that worked in your 40s often does not work in your 60s. Retirement is less about maximizing returns and more about protecting the life you have built.
If you are a University of Rochester professional nearing retirement, now is the time to make sure your investments support your income, reduce unnecessary risk, and fit the next chapter of your life.
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The Pitti Group Wealth Management, LLC (“The Pitti Group”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where The Pitti Group and its representatives are properly licensed or exempt from licensure.