For decades you’ve been a dedicated saver for retirement, seen crashes and rallies, gotten a lot of advice, and have tried to do all the right things with your money, but you still worry. The biggest problem isn’t your lack of understanding; it’s that you don’t have an actual written plan.
All retirees have their own unique beliefs about what a successful retirement looks like, yet too many are unable to answer important financial questions about achieving that success. And, when you can’t find answers to your most pressing money questions, it’s difficult to feel financially secure.
In our 50+ years of experience, we’ve come to realize that there are nine specific questions you need to be able to answer about your money in order to plan – and achieve – a successful retirement:
If you can’t answer these nine questions, it means your retirement planning is based on hope and luck – not the best recipe for success. Read on to learn Momma’s Secret Recipe, instead.
Here are 9 basic questions you must be able to answer for a safe and secure retirement, so you can stop worrying about your money:
#1 – How much money can you safely take out of your assets for income?
#2– How long will your money last?
#3– Does your portfolio guarantee you won’t run out of income for as long as you live?
#4– How can you protect your assets against volatility and large losses?
Here are 7 Steps to follow for a Secure Retirement that will help you to stop worrying about your money:
#1 – Put your entire plan in writing, so you can feel free to spend your money – without guilt or fear
#2 – Understand the true risk you are taking right now and avoid all large market losses.
#3 – Eliminate your fear of running out of money by creating dependable monthly income “Paychecks” that will last for as long as you live.
If you’re retired and need a roadmap for financial success try our “7 Rules To Live By For Retirement Security”:
*Number 1 – Avoid Large Losses – never go through another -50% stock market crash like 2008 again.
*Number 2 – Minimize the total fees you pay, both direct and hidden fees.
*Number 3 – Significantly reduce daily volatility.
*Number 4 – Earn a reasonable rate of return based on the amount of risk you’re willing to take, not by taking excessive risks to get the highest rate of return that rarely materialize.
You saved so you could have a secure, worry-free retirement. Retired, or neared retirement, you constantly worry about your money because you are no longer receiving a paycheck.
You worry about your portfolio, all the volatility, how much you’ll lose in the next stock market crash, and your next statement.
You’re concerned about running out of money and how to turn your portfolio into dependable monthly paychecks that will last for as long as you, and your spouse, live.
You question whether you’ll earn a high enough rate of return on your assets.
If you’re a retiree and nearing retirement you could be making these big mistakes with your money.
#1 – Investing Your money like you did when you were younger and working
#2 – Not knowing how much risk you have in your portfolio right now, therefore not knowing how much you could lose in the next stock market crash
#3 – Riding out all stock market losses, believing you’ll always receive a 10 percent rate of return from the stock market if you hang on.
#4 – Not knowing how much income you can safely take out of your assets and how long your money will last
#5 – Not knowing the total fees you pay both direct and hidden, believing you’re paying 1 percent in fees when you could be paying 3 percent or more per year.
When you think about financial planning and the money you’ll live on in retirement, stocks and bonds probably come to mind. These market-based investments are often in the spotlight, and it’s true that they can help you grow your wealth. However, it’s also true that they may a number of downsides, one being that growth is unpredictable. This means that if you’re approaching retirement, or you’re already retired, one poorly timed downturn in the market could greatly set you back or even lead to you running out of money in retirement.
Since risk is inherent in investing, many people look for safer options. However, things like checking accounts or even high-yield savings accounts may not be the answer. Though they won’t lose money in a technical sense due to FDIC insurance, the value of your savings may still erode over time due to inflation.
So, what’s a savvy saver to do? One potential option is an annuity. If you’d like to save for retirement and create a guaranteed income stream – one that isn’t directly tied to the markets – a fixed indexed annuity offers an excellent option for consideration. Unfortunately, annuities get a bad rap because of misinformation, stereotypes, and myths. Below, we’ll tackle five of the most common reasons people hesitate to consider annuities as a viable retirement income option.
We all dream of a relaxing, carefree retirement that allows us to enjoy the fruits of our decades of hard work. However, this may be possible with proper planning. Whether you’re getting an early start or you’re nearing retirement age, it’s helpful to seek out the guidance of a professional financial advisor to ensure you’re taking the right steps to maximize your nest egg.
With so much riding on your retirement planning, it’s important to be intentional about the advisor you choose. You’ll want to find someone who you feel comfortable with, who takes the time to answer questions, and who can provide the type of advice and services you need.
With that in mind, consider the following ten questions as a suggested interview for potential financial advisors:
The COVID-19 pandemic and ensuing economic turmoil have caused many people to reexamine their finances. Even if you have taken control of your financial future by being diligent about saving for retirement, it’s normal to feel out of control when facing an uncertain economy and the prospect of a recession that may last for some time.
So, how can you shield your retirement portfolio in troubling times? Luckily, you have more power than you realize when it comes to recession-proofing your nest egg. These five tips will help you stay on track even in an economic downturn.
The typical rule of thumb is to maintain an emergency fund with three to six months of living expenses, but an economic downturn could last longer than that. Aim to up your cash reserves to one year’s worth of expenses and utilize a high-yield savings account to maximize your efforts. Doing so can give you greater peace of mind when unpredictable financial events happen.
