Strategies for Portfolio Preservation and Florida Retirement Considerations
Steve Hruby, CFP®, and Bob Sponseller, ChFC® of Allworth Financial regularly address financial inquiries in their weekly column. Readers are invited to submit questions related to financial challenges to yourmoney@enquirer.com.
Richard from Norwood asked about determining the ideal time to shift a portfolio from growth to preservation without being overly cautious prematurely. It's recommended to focus on specific goals for preservation and when funds will be needed rather than adhering strictly to a retirement age. Assets needed in the next two to five years should be shifted to conservative investments. Conversely, funds intended for a longer duration, such as 10 or 20 years, may remain in growth investments. This approach secures stability for immediate needs while sustaining growth potential for long-term assets. Annually reviewing and adjusting the financial plan in response to market dynamics or changing spending habits is advised.
Allworth Financial highlights that preservation strategies should be viewed as reallocating investments strategically rather than just minimizing risk. This phase involves aligning with tax strategies, income streams, and future healthcare costs to optimize asset utilization and support one's lifestyle effectively.
C.R. from Covington inquired about considerations when relocating to Florida for retirement, noting the allure of no state income tax. However, other financial considerations, such as homeowners' and flood insurance premiums, warrant attention due to rising storm risks and changes in the insurance market. In 2025, Bankrate noted that the average homeowners' insurance premium for a $300,000 property in Florida was roughly $5,800 annually, ranking third highest nationwide. Evaluating the overall cost of living, including variable property taxes and community fees, and healthcare access, especially for Medicare Advantage users, is crucial. Evaluating implications for existing estate and tax planning under Florida's legal system is also essential.
Additionally, practical considerations such as accessibility to essential services and opportunities for community engagement should be assessed. While Florida presents tax benefits, a comprehensive analysis of all living expenses is vital for ensuring a stable retirement lifestyle.
These insights are for informational purposes, and individuals should evaluate these recommendations against their financial objectives and needs. Consulting financial professionals, tax advisors, or attorneys is encouraged to address personal circumstances. Allworth Financial, an SEC Registered Investment Advisor, offers retirement planning services. Securities services are provided through AW Securities, a Registered Broker/Dealer, member FINRA/SIPC. For more information, visit Allworth Financial's website or contact their office.