People ask me this question all the time, “Raman, how do I know if my investments are still aligned with my retirement plan? Everything feels like it’s changing… the markets, taxes, interest rates…even my own comfort level with risk.”

And that’s a great question. Because your investment allocation, how much you hold in stocks, bonds, and cash, isn’t meant to be set once and forgotten. It should evolve with your risk tolerance, your retirement timeline, and your life itself.

And far too often I meet couples in Phoenix, Paradise Valley, or Tucson who haven’t re-evaluated their allocation in years. They’ve been through recessions, recoveries, and new tax laws, but their portfolios still look like they did when they were in their 40s. So what’s the problem? Well, that kind of static approach when you retire and start living off your portfolio can easily derail a retirement plan.

Why Your “Comfort Level” With Risk Isn’t the Whole Story

You see, risk tolerance is more than just how much market volatility you can emotionally handle, it’s also how much risk you can afford to take based on your financial stage. For example, I recently met a couple from Chandler who had built up close to $3 million across 401(k)s. They told me they were “moderate investors,” but when I reviewed their holdings, almost 90% of their portfolio was still in equities. Stock market has been doing phenomenal over the past couple of years and their equity exposure just ballooned because they never rebalanced their portfolio. They weren’t choosing to take more risk; the market had made that choice for them.

And that’s exactly where a risk alignment review comes in. It’s about making sure your money is positioned intentionally, not accidentally.

So, how do we position it intentionally? 

Step 1: Match Your Allocation to Your Retirement Timeline

Your retirement timeline dictates how much risk your portfolio can withstand.

• 10+ years before retirement: You still need growth to outpace inflation. Equity exposure remains important, but it should be diversified across sectors and regions.
  
• 5 years before retirement: This is where pre-retirees should start layering in stability — think bonds, cash reserves, or short-term fixed-income positions. It’s about reducing the odds that a bad market year forces you to sell investments at a loss.
  
• In retirement: The focus shifts from accumulation to distribution. Your portfolio’s purpose now is to create consistent income without depleting principal too early. That means combining growth assets (to fight inflation) with lower-volatility holdings that fund near-term withdrawals.
  

One of my clients in Tucson once said, “Raman, I finally understand…it’s not about avoiding risk; it’s about timing risk.” And she was exactly right. 

Step 2: Stress-Test Your Portfolio for the Real World

Here’s a simple truth: it’s easy to feel confident in your allocation when markets are calm. The real test comes during downturns. A stress test simulates what would happen to your retirement plan if markets dropped 20–30%. Would you still have enough liquidity for your next two years of living expenses? Would your income plan still work without selling investments at the wrong time?

When I work with my clients across Scottsdale, Marana, and Surprise, I build these “what-if” scenarios using Right Capital. The goal isn’t to scare you,  it’s to make your plan bulletproof. If a portfolio can survive a recession, rising interest rates, and a tax hike, and STILL provide the lifestyle you want, that’s when you know you’re truly aligned.

Step 3: Use Asset Location for Tax Efficiency

Alignment isn’t just about risk,  it’s also about tax efficiency. A very common mistake I see is when retirees spread investments evenly across every account (IRAs, Roth IRAs, taxable accounts) without realizing that different assets belong in different tax “buckets”. So here’s the educational framework I often share as base foundation –

• Tax-deferred accounts (IRA, 401(k)): Best for bond funds or REITs that generate ordinary income.
  
• Taxable accounts: Great for index funds and ETFs that produce qualified dividends and long-term capital gains.
  
• Roth accounts: Ideal for high-growth assets you want to keep tax-free in the future.
  

That simple change, which is what call asset location, can increase after-tax returns without increasing risk. It’s a quiet, efficient way to stretch your wealth further, especially in high-tax years or before Required Minimum Distributions begin.

Step 4: Rebalance Regularly, But Intentionally

Market conditions change. Inflation rises, interest rates shift, and global events create ripple effects. If you haven’t rebalanced your portfolio lately, chances are your allocation no longer reflects your true plan. You see, rebalancing doesn’t mean constant trading, it means realigning your investments back to their intended targets. It helps you sell high, buy low, and control portfolio drift over time.

And for many retirees in Phoenix and Paradise Valley, even a simple annual rebalance (or semi-annual during high volatility) can make the difference between a portfolio that stays stable and one that gradually skews too aggressive.

Step 5: Align Emotionally and Mathematically

The best allocation isn’t the one with the highest return, it’s the one you can stick with through every market cycle. If you lose sleep during downturns, it doesn’t matter how theoretically “optimal” your portfolio looks on paper. That emotional risk tolerance must be built into the design. And sometimes, the right move isn’t increasing returns, it’s reducing anxiety. Because when you stay disciplined, the math works in your favor over time.

What This Means for Arizona Retirees

Arizona is the home of retirees. From the golf communities of Scottsdale to the foothills of Marana, but they all face a unique mix of challenges: longer life expectancy, rising healthcare costs, and an unpredictable tax landscape.

Your investment allocation has to account for all of that. It’s not just about asset growth, it’s about income sustainability, tax control, and peace of mind. And remember, what worked during your working years doesn’t always work in retirement.

Markets evolve. So should your strategy. And your portfolio isn’t just a collection of investments, it’s the engine that fuels your next 30 years of life. Making sure your allocation aligns with your risk tolerance and retirement timeline means testing how it performs when things don’t go perfectly, and having a plan that adapts before you’re forced to react.

If you’re in Arizona, whether you’re nearing retirement in Chandler, already retired in Scottsdale, or planning from Tucson or Paradise Valley,  it’s worth asking: “Is my portfolio built for growth, or is it built for my goals?”

If you’re unsure, now’s the time to find out. You’ve built significant wealth but aren’t confident your investments match your risk tolerance or timeline, I invite you to take the next step.

Raman Singh, CFP®

Your Personalized CFO

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Important Disclosures

The information provided herein was obtained from sources believed to be reliable and is believed to be accurate as of the time presented, but it is provided “as is” without any express or implied warranties of any kind.

This material is intended for informational and educational purposes only and should not be construed as individualized investment, tax, or legal advice. You should consult with your own qualified investment, tax, or legal advisor before making any decisions based on this material.

Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Withdrawal strategies and tax outcomes will vary depending on individual circumstances, account types, tax brackets, and market conditions. No strategy can guarantee success or prevent losses.

Investment advisory services are offered through Singh PWM, LLC, a registered investment adviser offering advisory services in the State of Arizona and other jurisdictions where registered or exempted.

Singh PWM, LLC is a registered investment advisor offering advisory services in the State(s) of Arizona and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute