Retirement Tips

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September 22, 2017
Retirement Tips

Image Copyright Ted Grussing Photography – Used with permission

Over the years we have worked with hundreds of retirees and we have noticed that once people are ready to actually pull the trigger and move into retirement they suddenly become very conservative…

It’s an understandable fear. The full weight of their decisions finally lands with the realization that whatever amount of money they have is all they will have to last for the rest of their lives. And there’s no getting past that ‘the rest of their lives’ is a huge unknown.

So naturally, the number one concern most retirees address is how much income they can afford to take without running out.

Well our response to that is the first tip we give to individuals preparing for retirement:

  • Have your nest egg managed by a financial planner.

A financial advisor can be crucial to helping you develop a great financial plan to ensure your money can grow to sustain you in your retirement years. However, when searching for an advisor it is important to be cautious in your selection:

  • Make sure the person has credentials. If you were ever to need heart surgery, wouldn’t you make sure that you had a Cardiologist work with you? Likewise, there are several different credentials in the financial world that mean different things. It’s important to research these credentials to make sure you are working with someone qualified and educated to help you prepare for retirement.
  • Make sure you fully understand what strategies or systems the planner will use to build a portfolio just for you and how they will distribute income—especially during financial downturns and bear markets.
  • Ask if you can have a contact list of references of retirees who are trusting the planner to take care of their money.
    • Make sure to ask for clients who have been retired for at least 10-15 years
    • Ask the references how the value of their portfolio did during bear markets?
    • What percent of their original investment do they still have?
    • Are they confident in the advisor and methods?
    • The “normal percent” most experts say one can take from retirement assets is 4%, what percentage are the references taking?

You’ve worked hard for your retirement, so you owe it to yourself to make sure your savings are taken care of. Wouldn’t it be great to move out of the fear and concern to enjoy the excitement and euphoria of not needing to work anymore?

Have a great weekend!