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 believe the risk is simply a measure of how much you could potentially lose in the next stock market crash. Since 1929 the stock market crashes an average of 40 percent, every 7 years.
So as a retiree, or pre-retiree, are you willing to lose the same 40 percent to try and earn a higher rate of return?
If you have one million dollars saved for retirement, and you suffer a 40 percent loss, you’ve just lost 400,000 dollars and you now only have 600,000 dollars left. Can you afford this type of loss if you’re not able to take the same amount of income you planned from your retirement assets?
You started saving money decades ago, so you wouldn’t have to worry about money during retirement. You saved, sacrificed, and budgeted carefully so that when you retired, you’d have no more worries about your money. How has this worked out for you?
You’ve saved a lot of money, but you’ve found you worry more about your money now than you ever did before. You find yourself worrying more and more about big stock market losses.
The reason you first started saving money was to create a dependable income flow that would replace your paychecks and last for as long as you lived, once you retired. You saved money while you were working so you wouldn’t have to worry about money when you retired. The big problem is, you may have incorrectly been taught you have to invest your assets for growth instead of for dependable, even guaranteed, lifetime income.
Did you invest your money to watch it go up and down on a daily basis?
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:
When you started saving for retirement, you were told you could save up a big pile of money, use the earnings for retirement income, and leave the same exact pile of money to your beneficiaries. This probably won’t happen, because the world and the financial markets have changed, along with Safe Income Withdrawal rates.
