News
Warning: Many Seniors May Run out of Money in Retirement
Red Alert! The Decade of Portfolio Contraction Has Begun
Excessive Withdrawals – The old 4-percent rule of thumb isn’t a wise reference point for income any longer when you consider a retirement portfolio’s distributions of stock dividends and bond interest are generally below the antiquated benchmark. Most financial advisors recommend 3 percent, some even lower. However, most retirees don’t meet often enough to make adjustments in their distributions and continue to withdraw at levels their portfolio can’t sustain, resulting in portfolio principle loss.
Bad Investor Behavior – Some seniors raid their retirement portfolios to fund unscheduled events like home repair, a sudden trip to Europe or emergency medical costs. Few understand their retirement portfolio was most likely predicated on monthly income needs based on their retirement plan. Bad investor behavior can cannibalize portfolio principle.
The Sequence of Market Returns – The rules that govern the accumulation phase before retirement are not the same rules during distributions in retirement. The strategies are different ascending to retirement, then those descending during retirement. Take mountain climbing: Most of the deaths occur during the descent. The biggest retirement mistake is not adjusting your withdrawals for the downward market cycles and readjusting the new lower threshold that has now become “par.”
Extended Longevity – If you concede the average survivor of a married couple will live to age 93, then you may need to plan for a longer retirement based on living longer than the average. Willard Scott celebrated centurions on his TV show. There’s more than 72,000 in the U.S. Susanna Jones just died in May of this year at 116. She was a tri-centurion and a super-centenarian teenager. Jean Calment lived to age 122 and is the oldest person who ever lived according to the Guinness Book of World Records. Dr. Aubre De Grey, noted gerontologist, has said that the person who will live to age 150 has already been born. Could that be you?
The four horsemen of the financial apocalypse are coming, and it will be economic Armageddon.
More News
Building A Financial Profile
Creating cash flow every month isn’t an accident; it’s a deliberate act of spending wisely and saving for the future. Many consumers look to engage a professional adviser, because for most, managing your finances is not a do-it-yourself activity. ...
Released On: 1/21/2017
Views: 2953
Lazy Money Isn’t Working for You
Money market funds, CDs and savings accounts were the safe money havens of the past. But today, they’re crediting rates are so low, taxable and eroded by inflation. You worked hard for your money, so you need to make your money work hard for you. ...
Released On: 1/20/2017
Views: 3026
Is Your Money Searching for Sanctuary?
After the market meltdown of 2008, investors and savers alike want to have safe alternatives for portions of their money. Many near or in retirement just can’t afford another major downturn in the market, so conservative options need to be sought ...
Released On: 1/19/2017
Views: 2996
Tax Payers Need to Become Gamers of the Tax System
It doesn’t matter what game you like to plan, there are strategies and tactics to learn to become successful at any sport. The same is true of tax code. There are three basic moves to make that can positively affect the taxes due on your 1040. Wa ...
Released On: 1/18/2017
Views: 2504
Understanding Your Psychonomics Risk Could Change the Way You Invest
Every investor should have a financial profile that includes a risk-tolerance assessment, timeline goals and a retirement or estate strategy. It becomes the reference point for all your money decisions and any plan alterations that will occur. Wa ...
Released On: 1/17/2017
Views: 2477
Why Does Full Disclosure Seem So Elusive for Investors?
It’s really troubling in the information age an investor can’t seem to secure the true cost of their investments or consulting advice. Even when you Google—the front of all knowledge—most financial products disclosures don’t reveal the total cost ...
Released On: 1/16/2017
Views: 2652
Elder Care Costs in Retirement
Elder care in retirement is the greatest economic threat to seniors. Medical expenses and long-term care costs can exceed $220,000 for a married couple during their golden years, and living longer could increase the costs even further.
Released On: 1/14/2017
Views: 2813
Take-Home Pay is the Net Effect of Retirement Income
The number-one concern of retirees is they may be outliving their money, but their number-one compliant is paying taxes during retirement. Focusing on taxes needs to be coordinated with the purchase investment products to determine investor suita ...
Released On: 1/13/2017
Views: 2565
Required Minimum Distributions on Qualified Retirement Plans
Most retirees don’t focus on required minimum distributions. Some don’t even know what RMDs are. Only a few seniors have a handle on them and are aware of the penalties for not complying with the laws that govern RMDs.
Released On: 1/12/2017
Views: 2709
Real Income Advisors Are Rare in Retirement Management
Retirement income just not just triggering a lifetime annuity and just setting it and forgetting it. Portfolio income needs many investment positions to generate retirement income to age 100.
Released On: 1/11/2017
Views: 2547
Can the Way Advisors Are Paid Cause Conflicts of Interests?
It is impossible to be in the advisory business, be altruistic and be profitable? Is there such an inherent conflict of interest between advisor and investor that the compensation models that exist today need to be scraped? The Department of Labo ...
Released On: 1/10/2017
Views: 2403
If Returns Are Not Worth the Risk, Why Buy and Hold?
Many modern portfolio proponents use the risk-return theory of the efficient frontier to measure market returns against risk exposure. The goal is to optimize returns with the least amount of risk. If portfolio performance falls below the efficie ...
Released On: 1/9/2017
Views: 2631
The Home Equity Conversion Program
More than ever, seniors in or near retirement are struggling to create a reasonable lifestyle in their golden years. Many have mortgages, short debt and family obligations, such as long-term care costs for their aging parents and unpaid college l ...
Released On: 1/7/2017
Views: 2722
Protect Your Retirement Lifestyle from Elder Events
Sooner or later most seniors will experience some type of morbidity or illness event during retirement. Some retirees live in single story homes, with limited or no steps at all. Walk-in bathtubs, nonskid tile and support bars can help, but they ...
Released On: 1/6/2017
Views: 3176
Social Security & Medicare in Retirement
You’re probably being pummeled with Medicare literature in the mail, but what’s really covered? The topic is overwhelming, thanks to the complicated coverage policies. Watch the interview with retirement specialist Curt Chojnowski.
Released On: 1/5/2017
Views: 2589
Tax Free Income from Cash Value Life Insurance
Depending upon your risk tolerance and the state of your health, you may want to consider TAMRA compliant cash value life insurance designed for accumulation and not necessarily as a death benefit.Watch the interview with retirement specialist Cu ...
Released On: 1/4/2017
Views: 2532
Tax Free Retirement Income Sources
Most seniors and retirement advisers focus on qualified plan monies. But there are non-qualified monies that could make the difference between experiencing retirement prosperity or retirement poverty. Watch the interview with retirement specialis ...
Released On: 1/3/2017
Views: 2490
Worldwide Government Debt & Pension Obligations Out of Control
The nations of the world continue to print money, expand their governments and obligate their taxpayers with debt they can’t repay. The world economy is so interconnected, that when the first domino falls it will cause a rippling effect of a worl ...
Released On: 1/2/2017
Views: 3260
Map
Right on The Money
Get DirectionsRight on The Money
-
11460 Tomahawk Creek Parkway
Leawood, Kansas 66211
United States - 800.992.2642 ext 230
- 8:00am CST - 5:00pm CST Monday through Friday
