The Top Five Risks Retirees Encounter and How to Outmaneuver Them

"Retirement is a journey, not a destination." — Robert Rivers.

Retirement should be a time of contentment—a reward for a life of dedication, hard work, and constant effort. But in today's changing world, preparing for retirement also means preparing for challenges. Allow me to share with you the seven biggest threats that you, as a future retiree, might face—and, more importantly, how to navigate them effectively.

1.? The Number Risk in Retirement – RUNNING OUT OF MONEY BEFORE YOU RUN OUT OF LIFE!

Let me explain a few things here:? 1.? A stock portfolio, savings account, bonds, CDs, and Real Estate cannot.? You can lose everything in the market, savings accounts for years have paid less than 1% to 2% not even keeping up with inflation, when interest rates go up Bond prices go down.? On CDs you have no liquidity and I call them a Certificate of no Return and then there is Real Estate.? Remember 2008 and it has started again Commercial Buildings are going into foreclosure because they have no tenants.? There are many risks with the rental market.? Remember you pay TAXES on all of these financial vehicles.

A little-known fact that Financial Advisors who get paid a fee fail to tell their clients is that FIXED, AND FIXED INDEXED ANNUITIES, AND CASH VALUE LIFE INSURANCE will give you income that you cannot outlive if structured properly.? In fact, with certain Fixed and Fixed Indexed Annuities you would only need to use 2/3 of a stock portfolio for a 4% distribution rate and only 1/2 of a stock portfolio for a 3% distribution rate. Leaving you possibly 10s of thousands maybe hundreds of thousands of dollars to use for other things. A stock portfolio cannot do this. They also have no market risk, and I can show you how you can have income for life even if your assets run out! ? Also, they grow tax deferred and in distribution they are tax free if the annuities are set up in a Roth IRA.? These financial vehicles do not affect taxation of Social Security for the means testing for Medicare Part B nor do they have required minimum distribution. There are many that I will go over in another newsletter.? There's also proven in many studies that guaranteed income in retirement will give you a less stressful, healthier, and longer happy life!

2. Longevity: A RISKS Multiplier!

We're living longer, healthier lives, and that's fantastic news. Yet, ironically, our increased longevity presents us with a significant retirement hurdle—it multiplies all the other risks in retirement! How do we tackle this? By altering our perspective on when retirement should start and think outside the box of Conventional Planning and the propaganda of Wall Street which use to say a 4% distribution rate was a safe rate of distribution that your income will last until age 90.? Now that is down to 2.8%!? Also, if your portfolio is in the stock market you are paying a fee to the advisor or company that is managing your portfolio whether you make money or not!

Financial experts suggest delaying the retirement age to 70, when possible. By waiting until then, we can maximize Social Security benefits and stretch our retirement savings further. Social Security increases each year by 8% plus a cost of living increase from age 62 until 70!? Also, in your diversified portfolio have financial products that do not affect the taxation of SS or the Means Testing for Medicare Part B.? CASH VALUE LIFE INSURANCE and you ROTH IRA or 401K.? But remember this if that ROTH product is in a stock portfolio you will have Market Risks and Sequence of Returns Risk that will decimate your retirement that I will explain later in this Newsletter.?

One thing that people should do is the Home Equity Conversion Mortgage (HECM) when structured correctly will give you a TAX-FREE bucket of money that grows every year.? You worked hard to pay for your house, now it is time for your house to start paying you money.? This is just a matter of EDUCATION!

3. The Rising Tide of Healthcare and Long-Term Care Costs!

It's no secret—healthcare expenses can make a significant dent in your retirement nest egg. Fidelity Investments' research suggests that an average retired couple aged 65 can expect to shell out a whopping $315,000 on medical expenses during retirement.

To mitigate this cost, consider investing in long-term care insurance early, preferably in your 50s. Health savings accounts (HSAs) are another smart move to offset healthcare expenses, offering attractive tax advantages.

Long term care costs between $50,000 to $200,000 A year and goes up by 6% or more every year. 70% of all Americans will need some form of long-term care at some point in their life. 40% of Americans under care right for long term care are between the ages of 18 and 64!

4. The Rollercoaster Ride of Market Volatility and Sequence of Returns Risk!

Stock market swings have always been a major concern for retirees. In times of market downturns, such as the recent bear market, anxiety can skyrocket.

While you cannot control market fluctuations, you can control your reaction. If possible, delay retirement during such volatile periods. And importantly, resist the urge to liquidate your investments hastily.?

5. Unforeseen Family Expenses

The unpredictable nature of life can spring unexpected costs related to family emergencies or health issues. Financial precautions such as long-term care insurance, life insurance, and legal financial agreements can provide a safety net against these unforeseen expenses.? People in retirement are more concerned about the return of their money than they are on the return on their money.

If you have a down market in the first few years when you retire you are going out income have a decreasing asset and not contributing to it anymore. It is called Sequence of Returns Risk and it will decimate your retirement as you will run out of money in a short of time.? I find very few financial advisors even inform their clients of this risk!

6. Shifting Sands of Social Security Policies

The Social Security Administration supports nearly 50 million American retirees. But, with the retirement of the baby boomer generation, this system faces potential insolvency in the 2030s.

However, it's important to note that while changes to Social Security payouts are a possibility, they do not top the retirement risk list. With enough political will, measures can be taken to ensure the system remains fully funded.

Navigating these potential risks doesn't have to be overwhelming. The secret to a secure retirement lies in anticipation, preparation, and making informed decisions. As a Financial Advisor specializing in retirement planning, my mission is to guide professionals like you towards a retirement that is financially secure and stress-free.

In summary, in retirement it is not about return on your investment, it is about distribution of your assets.? There are many other risks in retirement that people need to know about and prepare for.? As I said before, people need to think outside the box of conventional financial planning and stop listening to the propaganda of Wall Street.? My number one goal both professionally and personally is protection of the family and protection of their assets, my plans don't stop at age 90 they go to age 120 they will also create a legacy for the family. If you want to secure your golden years and enjoy the fruits of your labor without financial concerns looming overhead, let's talk.

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

WEBSITE: https://alanporternc.com/strategicwealthstrategies ?

DEBT FREE FOR LIFE WEBSITE:? debtfree4lifeamerica.com

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