From Risk To Reward: Ensuring A Secure Retirement
Alan Porter,
Certified Financial Fiduciary, Certified Tax & Business Advisor, Emphasizing, TAX & HEALTH COST savings, Guaranteed Income & Asset Protection. Retired Military, Blackhawk Instructor Pilot
"The best way to predict the future is to create it." - Peter Drucker
Retirement ought to be the golden period in one's life, a time of contentment after years of hard work, perseverance, and dedication. However, as with every significant transition, it brings its share of challenges. Retirement, especially in the dynamic world of today, requires more than just financial accumulation; it demands planning, strategy, and risk management. This article reveals the six most significant threats looming over retirement and outlines how these can be adroitly maneuvered for a worry-free sunset phase of life.
Retirement
Every retiree may face is the dread of depleting financial resources before life's journey ends. Savings accounts, stocks, bonds, CDs, and real estate, though parts of a diversified portfolio, are vulnerable to market turbulence, inadequate interest rates, liquidity issues, FEES and TAXES People need to think outside the box of conventional retirement planning! People need to understand, a 1% fee over a 30-year period will reduce one’s income by 1/3 rd ! The average fee in a 401K across American is 2.99%! Confirmed by Time.com June 4 th 2012, stating that, “It isn’t unusual to find 401K plans with total costs paid by the participant exceeding 3% annually.
More alarmingly, they are all taxable. However, a less-known secret is that a guaranteed income, if planned right, can make a significant difference. Fixed and Indexed Annuities, and Cash Value Life Insurance, when structured optimally, can provide a lifelong income stream, even if the initial assets are exhausted.
These financial vehicles grow tax-deferred and can even offer tax-free income if set up in a Roth IRA, providing an efficient solution to this pressing concern. They eliminate the number 1 risk in retirement, RUNNING OUT OF MONEY BEFORE YOU RUN OUT OF LIFE plus many others that a stock portfolio can’t!
Longevity
A risk multiplier in disguise. Longer, healthier lives, though undoubtedly a boon, pose a considerable retirement challenge as it amplifies all other risks associated with retirement. To counter this, financial experts suggest delaying retirement until the age of 70, allowing maximization of Social Security benefits and the extension of retirement savings.
Along with this, financial products like Cash Value Life Insurance and Roth IRA or 401K, which don't negatively impact Social Security taxation, should be considered as part of the retirement portfolio. An often-overlooked strategy is a Home Equity Conversion Mortgage (HECM) which, when properly structured, can provide a growing, tax-free source of funds.
Escalating cost of healthcare and long-term care
An average retired couple can expect to spend a staggering $315,000 on healthcare alone during their retirement years. Long-term care, ranging between $50,000 to $200,000 annually, is another financial burden.
To mitigate these costs, investing in long-term care insurance in your 50s and establishing Health savings accounts (HSAs) with their attractive tax advantages can be considered. Also the death benefit of a life insurance policy can be accessed for pennies on the dollar TAX-FREE to off set this costs!
The Rollercoaster Ride of Market Volatility and Sequence of Returns Risk
Market volatility and sequence of returns risk can induce tremendous anxiety and uncertainty. Market downturns, such as bear markets, can make it difficult for retirees to maintain their standard of living. While market fluctuations cannot be controlled, one's reaction to it can be.
A possible strategy during volatile periods is to delay retirement or put your money with a financial product, such as Fixed, Fixed Indexed Annuities, and Cash Value Life Insurance that do not have these risks.
Unforeseen family expenses
An unpredictable risk associated with emergencies, health issues, or family crises. Adequate precautions like long-term care insurance, life insurance, and legal financial agreements can provide a safety net.
领英推荐
The aim is not high returns on your investment, but the protection of your wealth. Understanding the Sequence of Returns Risk is critical to prevent rapid depletion of your retirement savings during a market downturn. Has your financial advisor told you about this?
Shifting Sands of Social Security Policies
The Social Security Administration, which currently supports nearly 50 million American retirees, is facing potential insolvency in the 2030s. However, such changes are not the chief threat to retirement security. Given political will, there are ways to keep the system fully funded.
Conclusion
Confronting these potential risks can appear overwhelming, but with the rightpreparation, knowledge, and decision-making, they can be successfully navigated. As retirement planning evolves, it becomes more about the strategic distribution of assets than the return on investments. As such, it's crucial to ensure that your retirement plan extends beyond age 90, safeguards your assets, and leaves a legacy for your family. The golden years of life should be a period of comfort and peace, a time to reap the benefits of your lifelong labor without the cloud of financial worries. So, prepare, strategize, and make your retirement the best phase of your life. You must have GUARANTEED INCOME in retirement to live a more healthy, less stressful, happier, and longer life than to worry every day about the ups and downs of the stock market! This has been proven in many studies.
Do not let your hard-earned money be at the mercy of unpredictable markets and excessive taxation.?Schedule a free 15-minute call?with me today?to explore the possibilities to secure a more comfortable retirement.?It is time to?THINK OUTSIDE THE BOX OF CONVENTIONAL FINANCIAL PLANNING!
In addition to scheduling a 15-minute call with me, you will receive a copy of my groundbreaking book:??
ALAN PORTER??To schedule an appointment go to:?????https://go.oncehub.com/AlanPorter
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Retired US Army?
Cell 910-551-1046 Email:?[email protected]?
Life /Annuities/Health Insurance Sales, Certified Financial FiduciaryLearn the strategies for TAX-FREE Retirement Income & Distributions