Are You Taking Too Much Risk in Your Retirement Plan
- maderichfinancial
- Apr 7
- 4 min read
If you are within a few years of retirement, one of the biggest risks you face is not just market volatility. It is timing. When thinking about risk in retirement planning for Boeing employees, timing can have a much bigger impact than many people realize.
Many Boeing employees spend decades building their retirement accounts. Over time, those accounts grow, and the focus is often on staying invested and continuing that growth. However, as retirement approaches, the strategy often stays the same. That is where problems can begin.
Get a Clear Picture of Your Risk
If you are starting to wonder how much risk you may be taking, it can help to get a clearer picture of where you stand.
The Hidden Risk Most Pre Retirees Overlook
When you are younger, market downturns are easier to recover from because you have time on your side. The market has historically rebounded, and long-term growth helps smooth out short-term losses.
As you move closer to retirement, that cushion of time becomes smaller. A major drop in the market can have a lasting effect on your savings, especially if it happens in the final years before you stop working. This is often referred to as sequence of returns risk. While the term may sound technical, the concept is straightforward. If losses occur at the wrong time, they can impact how long your money lasts.
This is one of the most important risks to understand as you approach retirement.
What a Market Drop Could Mean for You
To help make this more real, imagine you are 60 years old and planning to retire within the next three to five years. Most of your retirement savings are still invested in the market, just as they have been for years.
Now imagine the market drops by 20 percent.
At that stage, you are not just losing money. You are losing time. Instead of waiting for a recovery, you may be forced to make decisions based on a lower balance. That could mean delaying retirement, adjusting your lifestyle, or withdrawing funds earlier than planned.
The closer you are to retirement, the less time you have to recover from a downturn. That is why timing matters so much.
Growth Mode vs Protection Mode
Most employer retirement plans are built with growth in mind. During your working years, that approach makes sense. The goal is to build wealth steadily over time.
However, as retirement gets closer, your priorities often begin to shift. Instead of focusing only on growth, you may start thinking more about preserving what you have built, reducing exposure to large losses, and creating a more stable and predictable future.
The challenge is that many people stay in growth mode longer than they should. Not because they are doing anything wrong, but because no one has helped them adjust their strategy for this next phase.
How Exposed Is Your Retirement Plan?
Seeing how a market drop could impact your plan often raises an important question.
How exposed am I right now?
Ask Yourself These Questions
As you think about your own situation, it may be helpful to take a step back and reflect.
If the market dropped tomorrow, how would it affect your retirement timeline?
Would it delay your plans or change your level of confidence?
Do you have a portion of your savings that is protected from loss, or are you relying heavily on the market to perform well right before retirement?
If you are unsure how to answer these questions, you are not alone. Many people reach this stage without ever fully evaluating their level of risk.
The Goal Is Not to Eliminate Risk
This is not about pulling everything out of the market or avoiding growth altogether. It is about being intentional with how your money is positioned.
A thoughtful strategy often includes a balance between growth and protection. It considers how your plan will perform in both strong and weak markets. Most importantly, it helps ensure that one downturn does not derail your retirement plans.
You have already done the hard part by building your savings over time. Now the focus becomes protecting what you have built and making sure it supports the life you want moving forward.
The question is not whether the market will fluctuate. It is whether your plan is prepared when it does.
See How Exposed Your Retirement May Be
If you are unsure where you stand, a closer look can provide clarity.
We offer a free Retirement Stress Test designed to help you understand your current level of risk, identify potential vulnerabilities, and explore ways to reduce unnecessary exposure. This is simply an opportunity to better understand your position and your options.
There is no cost and no obligation. Just clear and helpful insight based on your situation.
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