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Whether you’re just starting out or close to retirement. We would love to discuss how we can help you visualize your retirement lifestyle and make sure you’re on a safe financial path based on your unique circumstance.
We suggest a “retirement stress test” to determine whether you have enough savings, assets and income to maintain your standard of living for life.
Most people have a number of questions concerning their retirement, including:
Have I saved enough money to provide an income for the rest of my life?
What if I suffer a serious illness or injury requiring long term care?
What if the market suffers a sustained downturn during retirement?
How will I be able to afford healthcare and prescription drugs?
We are here to answer your questions and to see if we’re a good fit to provide you with a goal-based retirement plan.
If you’re married and haven’t done so already, you should discuss if you have similar or different ideas of your ideal retirement and plan accordingly.
We can discuss and evaluate long term care insurance alternatives as a way to transfer the extremely high cost of providing health care, have options for the type of care (home or facility) and protect your assets.
Providing a retirement income by de-cumulating your assets is one of the most difficult financial times we will all face. Making errors at this point can be irrecoverable, affecting whether you last longer than your income does.
Our investment goal is to determine how to best create a retirement income that will last a lifetime.
Three very important financial risks in retirement are:
- Timing: what if you retire during a significant market downturn.
- Inflation: will your income that keeps pace with rising costs.
- Longevity: will your retirement income last a lifetime.
We help determine the appropriate way for you to either transfer or avoid the three most important financial risks based on your risk tolerance and life expectancy. We continue to monitor your results to see if you’re on the right financial path and make adjustment when needed.
The advantage of time:
When it comes to saving for retirement, time really is money. The reason is compounding – the snowball effect that occurs when the earnings on your investment begins to generate their own earnings. Over longer periods, it potentially can have a substantial impact on the growth of your money.
The value of an early start:
Thirty-five year old Eve is an early bird. She puts $1000 a month into her retirement plan every year until she is 45. After contributing $120,000 for those 10 years, she never adds another dime.
Paul, on the other hand, is a procrastinator. He doesn’t tuck anything away until he is 45. He saves $1000 a month, but continues for 20 years, until age 65. His contributions total $240,000.
With an annual return of 7%, who wins? Paul is clearly in a good position, having accumulated $492,000 at age 65. Despite saving $120,000 less, Eve still maintains a substantial edge, accumulating $642,000 at age 65.
Eve’s extra 10 years of compounding more than makes up for the shortfall in her contributions. Eve, the early investor, comes out $150,000 ahead in 30 years. Most likely, Eve would have continued to contribute, adding to her advantage.