Will You Go Broke In Retirement?
We have all seen it; elderly people who have enough and others in squalor. Nobody want to go broke in retirement and nearly every retiree fears it. What can one do about it?
There is no simple answer because in matters of investing, tax and estate - not to mention the right kind of behaviour and decisions throughout your life and the different stages of a market cycle - it is never simple. The short answer is of course build a relationship with an Advisor you trust. * Personal plug * I am growing my practice and looking for engaged clients who want a passionate planner in their corner. Email or call me 778-922-7353 [email protected]
If you want to go it on your own, here are some things to consider:
There is a right way to put your money in and a right way to take it out.
- Inflation is a real threat. Loss of purchasing power has been devastating to countless retirements. Holding all cash, all fixed income or other "safe" investments does not protect you from inflation AKA running out of money. With money comes risk no matter what. Are you choosing the best investment mix to protect yourself? There is a right way to put your money in and a right way to take it out.
- Taxation and loss of government subsidy can drag you down in retirement. Getting put into a situation where you are forced to pay substantially more tax or disqualify from government subsidy because proper planning wasn't done bites - and sometimes this bite can be bigger than any returns you may have hoped for. Foresight, strategy and agility to policy is critical. There is a right way to put your money in and a right way to take it out.
- Don't get psyched out. Behave. You've heard it before... trying to time the markets, getting scared and pulling out at the bottom, going all in on a hot stock tip. This sort of behaviour can and has obliterated many retirement dreams. If you think emotion could get the better of you, or don't have an investment strategy you feel comfortable holding through an entire market cycle, go see an Advisor. There is a right way to put your money in and a right way to take it out.
So back to the question "will you go broke in retirement"? If you're not feeling confident on your own, ask your Advisor for a written financial plan and find out your trajectory. If they don't offer you one that satisfies you, look for someone better. I build a free retirement plan for every potential client to show how committed I am. Email me to request yours today. [email protected]