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.
All information herein has been prepared
solely for informational purposes, and it is not an offer to buy or sell, or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy.
Securities and investment advisory
services offered through National Planning Corporation (NPC), NPC of
America in FL & NY, Member FINRA/SIPC, and a Registered Investment Adviser. Registered
Representatives of NPC may transact securities business in a particular state
only if first registered, excluded or exempted from Broker-Dealer, agent or
Investment Adviser Representative requirements. In addition, follow-up
conversations or meetings with individuals in a particular state that involve
either the effecting or attempting to effect transaction in securities, or the
rendering of personalized investment advice for compensation, will not be made
absent compliance with state Broker-Dealer, agent or Investment Adviser
Representative registration requirements, or an applicable exemption or
exclusion. Kemp and Associates and NPC are separate and unrelated
companies. NPC PRIVACY POLICY. NPC # 70702 02/15
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Opinions voiced on this blog are not
intended to provide specific advice and should not be construed as
recommendations for any individual. To determine which investments may be
appropriate for you, consult with your financial, tax or legal
professional. Please remember that investment decisions should be based
on an individual’s goals, time horizon, and tolerance for risk. There are
no guarantees that any investment strategy will meet its intended objective.
Estate planning can involve a complex
web of tax rules and regulations. You
should consider the counsel of an experienced estate planning professional
before implementing any strategy.
