3 Down-Market Strategies for Retirees

Take control of your retirement portfolio . [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=38092&elqTrackId=7ef05c380076448ea71ca430f248c44c&elq=87fba9db3d214dee835508f65300ee85&elqaid=38092&elqat=1&elqCampaignId=17854) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] As I write this in mid-August, U.S. stocks and core bonds are both down about 9% so far this year. That's tough to swallow for investors at all life stages, but especially for retirees who are actively drawing upon their portfolios. Susan Dziubinski and I recently sat down to discuss strategies that retirees can employ]( to take back a sense of control when the market feels out of control. The best part: A few of these strategies are pretty painless. Elsewhere on the site this week, our team dug into the Inflation Reduction Act, which President Biden signed into law this week. As Morningstar contributor Mark Miller noted in this thorough discussion, the n[ew legislation aims to curb consumers' healthcare outlays]( in a number of ways—capping the costs of insulin for Medicare enrollees, for example. The most significant provision, however, limits Medicare recipients' out-of-pocket prescription-drug costs to $2,000 a year. Full stop. That change won't go into effect until 2025, and it doesn't address the [inflationary pressures]( that consumers are feeling most acutely today—gasoline and food. But given that healthcare spending is typically a larger share of retiree expenses than is the case for the general population, the new legislation is apt to make a meaningful dent in the healthcare-related outlays for retiree households—if not right away, then eventually. Relatedly, Dave Sekera took a look at the [equity sectors that have the most to gain and lose]( from the new legislation. While producers of clean-energy products stand to benefit, he notes that valuations in the space are rich. Meanwhile, pharmaceutical and biotech appear to be hurt the most by the new legislation, but Sekera points out that much of the news has been incorporated into their current share prices. In other words, the Page 1 headlines are rarely a good reason to make changes to your portfolio. Finally, I appreciated Amy Arnott's [clear analysis of rebalancing]( when it works and when it doesn't. I've long been of the mind that rebalancing between stocks and bonds delivers a payoff in risk reduction rather than returns enhancement, which is what we've seen on display so far this year. I'm still a believer that rebalancing a portfolio at least periodically is a solid practice, especially in [retirement]( but I also know that [smart people may disagree with me](. I hope that you're making the most of these waning days of summer! I know that I am. With warm regards, Christine Benz [3 Tax Strategies for a Bear Market]( Want to lower the taxes due on your portfolio? Here's how. [Watch Now]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [The Best Investments for Taxable Accounts]( With some care, investors can build a tax-efficient portfolio that’s diversified, too. [Read More]( [Joe Saul-Sehy: What Is Your Growing Season?]( The author and financial podcaster on financial independence, the 'scarcity mindset,' and the importance of time horizon in deciding how to invest. [Listen Now]( [3 Down-Market Strategies for Retirees]( Here's how to take control of your retirement portfolio during a bear market. [Watch Now]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2022 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602