Is My Financial Planner Crazy? This Is Why Kimberly-Clark Employees Are Being Told to Invest More Aggressively.

Kimberly-Clark employees should consider a risk-adjusted investment strategy that fits their risk tolerance and retirement goals - (Advisor Name) of The Retirement Group suggests seeking personalized advice on how to make these important decisions.

In diversifying investments - (Advisor Name) of The Retirement Group says Kimberly-Clark employees must consider their financial comfort and long-term goals - 'People should use professional guidance to find the right strategy for them'

In this article:

1. Options for investment for Kimberly-Clark employees.

2. How to interpret financial advice and plan a retirement.

3. A comparison of the benefits and risks of aggressive investment strategies and the bucket method.

Investors have many ways to return money. You probably picture the stock market when you think about investing but you can also put your money in bonds, real estate, precious metals, cash or cryptocurrencies. A Bankrate survey found that Americans would choose 29% in real estate, 26% in the stock market, 17% cash investments (savings, CDs), 9% gold or other precious metals, 9% bonds, 6% Bitcoin/cryptocurrency and 3% neither.

Learning about investment decisions at Kimberly-Clark: Understanding investment decisions.

With so much information online and so many options when it comes to investing, people working at Kimberly-Clark are probably unsure of what decisions are best for them. Take 55-year-old Virginia as an example: she and her husband read an article recommending one should have a 100 - age minus - stock portfolio in retirement. A second professional gave them financial advice as well.

The first advisor recommended 40% stocks and the second was conservative and recommended 75%. The other advisor defended his more aggressive approach by citing the current bond market. Two more advisors who supported the aggressive approach left Virginia confused. It includes $1.4 million in IRAs and two homes that will all be paid off by retirement. Virginia asked herself why she was choosing this option. Who is right? How do we decide with such varied advice?

Navigating Diverse Financial Advice

If you ask any Kimberly-Clark employee what the answer is, it probably is a no. Your financial planner is not crazy. There are literally thousands of 'right' ways to build a retirement portfolio and many rules that are just rules of thumb. That approach of subtracting your age from 100 is but one of many. Imagine you invested only 40-45% in stocks. Here's why that sounds a little conservative:

Risks from Aggressive Investment Strategies.

To employees of the Kimberly-Clark now considering a more aggressive investment strategy, remember that said approach is rarely the best one. Having an aggressive portfolio can be stressful during high volatility. And losing too much of your balance near retirement to market fluctuations is very risky. Anyone hoping to retire soon should avoid sacrificing money that could be tapped soon. In this scenario - called the sequence of return risk - you would pull out of a depreciating portfolio that has lower future potential returns. Best strategy: Have money set aside for when the market goes down. This will provide greater potential upside with minimal possible loss.

Seeking Professional Financial Advice

To Kimberly-Clark employees looking for expert financial advice: what some professionals suggest might not always be something that works for you. Pick a strategy you feel comfortable with, and a qualified CFP will work to your specifications. In consultation, state your concerns, fears, hopes and goals to your elected professional. That way they can assemble an appropriate strategy for you.

The Bucket Method Strategy

Another strategy advisors often recommend to Kimberly-Clark employees is the bucket method. Here your assets are split into categories based on investment time frames. As an example, you might have one very short-term part that you conservatively invest to avoid losses should you need to withdraw.

Bucket 1: A bucket would hold one or two years of living expenses. This cash is kind of an emergency fund. Those are the dollars you will use to pay for your everyday living.

Bucket 2: Another would be a mid-term investment pool (something like the 100 minus your age strategy). According to who you talk to, Bucket 2 will contain five to ten years of living costs. In this bucket you will find medium-risk and return investments including blue-chip and dividend-paying stocks, high-quality bonds, certificates of deposit and other medium-risk quality investments. Make sure this bucket gets income from a somewhat diversified portfolio design that you know is reliable.

Bucket 3: The final portion would be the long-term - the aggressive part of this strategy. The idea behind an aggressive long-term approach is that your money will earn higher returns without you really feeling it when the balance drops. Since the time frame is 10 + years, you would worry less about day-to-day volatility and be more aggressive. This bucket is for more risky investments like junk bonds, commodities and riskier stocks. Expect not to touch the money in Bucket 3 for at least ten years. Ideally it will survive market swings and still make the maximum return.

Tailored Bucket Strategy for Your Needs.

It is also worth noting that depending on your time until retirement, how long you need your money to last and your risk tolerance level, everyone will add different sums of money to each bucket. For instance: if you have enough cash to last you thirty or more years of retirement, you're over 50, and you're not a big risk-taker, you might put 75% of your remaining (after Bucket 1) money in Bucket 2 and 25% in Bucket 3. If you're still barely 30 and okay with higher-risk investing, you might want to flip those numbers.

Conclusion: Find the Right Investment Strategy.

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So basically, investment strategies cannot always be about returns. For Kimberly-Clark employees, the best strategy is one that fits their philosophy about savings. If market volatility and daily fluctuations in your account balance make you feel anxious, inform your advisor. And remember that even if you are 50 or older, having an aggressive portfolio is perfectly normal and not crazy. Everything else aside, Kimberly-Clark employees might benefit from professional financial advice when unsure of what investment strategy is right for them. You can request a free cash flow analysis and consult with an advisor through The Retirement Group to learn which choice is best for you.

Sources:

1. Schwab, Charles.  'Phasing Retirement with a Bucket Drawdown Strategy.'  Charles Schwab ,  www.schwab.com/learn/story/phasing-retirement-with-bucket-drawdown-strategy?utm_source=chatgpt.com . Accessed 25 Feb. 2025.

2. Morningstar.  'The Bucket Approach to Building a Retirement Portfolio.'  Morningstar ,  www.morningstar.com/portfolios/bucket-approach-building-retirement-portfolio?utm_source=chatgpt.com . Accessed 25 Feb. 2025.

3. The Retirement Group.  'Retirement Guide for Kimberly-Clark Employees.'  The Retirement Group ,  www.theretirementgroup.com/en-us/retirement-guide/retirement-guide-for-fortune-500-employees?utm_source=chatgpt.com . Accessed 25 Feb. 2025.

4. National Council on Aging.  'Boost Your Retirement Portfolio with the 'Three Bucket' Strategy.'  National Council on Aging ,  www.ncoa.org/article/boost-your-retirement-portfolio-with-the-three-bucket-strategy?utm_source=chatgpt.com . Accessed 25 Feb. 2025.

5. ADP.  'Retirement Strategies | Guide for Employers.'  ADP ,  www.adp.com/resources/articles-and-insights/articles/r/retirement-strategies.aspx?utm_source=chatgpt.com . Accessed 25 Feb. 2025.