Beware of Too Much Risk in your Portfolio

I've heard it said, "Risk is for those trying to get where you are".

If you have it made with retirement assets, if you have enough money to successfully meet your retirement goals, then why not "protect" those assets so they will serve you all your retirement years.

Why put yourself in harm’s way?  Remember 2008?  Many people were ready for retirement but when they lost 50% to the stock market crash, retirement for many was postponed.

Do you believe there will be another financial catastrophe like the one in 2008?

Mark Twain said:“I am more concerned with the return of my money than the return on my money”.

After spending years accumulating retirement assets it can be hard to switch the mindset to distribution.  Many fixate on investment returns when they are really looking for a predictable and safe retirement income.

Stop acting like you need to capture every possible gain in the market.  Protect and insure your hard earned assets.  If you have enough money now, then carve off enough to protect your basic income needs for life without risking it all to another crash.  Doesn’t that make sense?

Warren Buffet said: “Rule #1: Never lose money.  Rule #2: Never forget rule #1.

What you do today can help improve your retirement income tomorrow.

The problem is not dying - it's living.  As long as you are living you and your spouse will need income.

With an annuity, you can run out of money, but you'll never run out of income. 

Have your advisor position your money so you will not suffer the same losses as in 2008.  Also prepare for retirement distributions of your money by using an income summary statement.

Please let me know if you have any questions.

Thanks,

Cory Payne

Beehive Insurance Retirement Planning Services

302 West 5400 South #101

Murray, UT 84107

801-685-6860 Office

801-685-2899 Fax

cpayne@beehiveinsurance.com

No Do-Overs in Retirement?

If you are retired or planning to retire in the next decade, there are steps you can take now to avoid an income death spiral in the retirement years. 

A few years ago my wife and I redecorated our office.  We painstakingly decided on what we thought was a mild green wall color.  After the paint dried we were shocked with our choice.  We went back to the store and selected a green two shades lighter and repainted the room.

I was not happy about re-painting the room at the time, but it was not a very painful process to do over.  I was lucky.  And the room turned out just the way we wanted.

Rarely are there “do-overs” that turn out well in retirement.  It’s important that sound financial decisions are made all along the path.   

#1  Failing to Have an Income Plan:  “If you fail to plan you plan to fail.”

So many people I talk with are just going to “wing it” in retirement.  They have $500,000 to $1,000,000 in retirement assets and plan on a “spend down” of their money.

A couple recently was leaving work having a combined income of $100,000 annually.  Now Social Security will only be paying them $30,000.  They were planning on spending down of their assets.

Filling their income gap by using $70,000 per year of their $600,000 retirement nest egg will be spent down before age 75, and if there is a stock market crash much sooner.

If you run out of money in retirement, what's your plan B? Live with your children?  If you plan properly your retirement assets can serve you until you leave this existence.

Most Retirees don't monitor and control their spending.  Start now to understand your annual income needs.

Create a budget.  Even a simple budget can give you a picture of where you’re headed.  Plan your income and how your money can safely serve you best. Plan for the death of a spouse and see how much your income will go down.  How will you replace that lost income? 

Get an income summary from your advisor outlining how and when they are going to utilize your current investments to ensure a successful retirement.

If you'd like help with a retirement income summary please feel free to contact me.

Cory Payne
Beehive Insurance Planning Services
302 West 5400 South #101
Murray, Utah 84107
cpayne@beehiveinsurance.com
801-685-6860