Friday, February 22, 2013

Life & Retirement Planning - The Big IF in Life


I usually tell people that there’s a big IF right in the middle of life. Just as you never know what may happen in the game of Life, there are many “what ifs” when retirees begin to plan for their retirement. For retirees and soon to be retirees, there are many ifs running through their minds.  One of the biggest retirement planning concerns is if they will outlive their income.  The good news is that there are products, processes and plans available to help mitigate longevity risk (outliving one’s income).

We typically address 3 core retirement planning scenarios with our clients:


#1: You Live too Long - In this scenario, we check that you have income funded with products that help minimize the possibility of you outliving your income.

#2: You Die too Soon - In this scenario, we closely evaluate what things will look like if you pass away.  This includes items such as your legal documents, estate planning and proper planning of income continuation to your spouse, children and/or heir(s).  Normally, we will also carefully evaluate life insurance options and Social Security to help ensure your spouse, children and/or heir(s) are protected. 

#3: You Become Disabled - In this scenario, we help ensure retirees have a plan in place that will pay you an income regardless of whether you’re able to work.  We typically evaluate disability insurance, long term care and other strategies to help ensure you will not be a burden financially to your loved ones if you become disabled.

One of these 3 scenarios could happen to just about everyone.  As you can see, we put our focus on strategies rather than specific products to help protect you in these various scenarios.  Just as you wouldn’t build a house around a faucet1, we don’t build retirement plans around specific products.  

Just like the classic food pyramid illustration, we want to build a retirees financial plan with a strong base.  Many people build their financial plan upside down by starting with products and rates of return.  They get it all wrong.  

Instead of products, we want to talk about the problem.  The problem that many Americans are going to have, regardless of what financial planner, product, or process they use, is having enough money accumulated to last a lifetime. 

There's an old saying that you either have a will or the state you live in has a will for you by default.  It’s the same with retirement planning.  You either work with someone who is well trained in retirement planning or you’re that person by default.  This is a scary thing for most people and it’s absolutely essential to ensure the right person is in the driver’s seat of your retirement.

For more information on how we can help you plan for retirement, contact us today. 

Image Credit: LifeSupercharger


Kohler TV Commerical, YouTube; https://www.youtube.com/watch?v=ZvDK9DjVjHA

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