Well it is finally over. No more political advertisements interrupting my enjoyment of the World Series. My Facebook feed has finally started to get back to cat pictures, fake news, and 12 people I need to wish a Happy Birthday. The question on everyone’s mind now is, “what does this mean?”. The reality is for some time we may not know exactly and uncertainty is not fun for anyone. A few things are certain and those are what we need to concentrate on right now, especially when it comes to our retirement planning.
- Have you planned for the possibility of a market sell off?
- Do you really know if you are on Track?
- Don’t concentrate on what you can’t control but what you can
Many thought this would happen immediately if Trump won the Presidency but as we have seen the opposite was the immediate reaction as the most indexes roared for 7 straight days higher. That’s not to say the danger is over or likewise that a collapse is pending just around the corner. One thing we do know for sure is that we are at all-time highs in most indexes and that alone should have you making sure you have prepared your portfolio. The number of people we see for initial consultations that tell us they are moderate or even conservative in their risk tolerance only to be shown the way they are investing is sometimes quite a bit more aggressive, is still surprising to me. Many of you are investing still like it is 1999 or maybe more appropriately like it’s 2007. Make sure you know your risk tolerance and your portfolio reflects it properly.
How much do you need to retire? How much can you safely draw? At what age is the best for you to retire, take income from your investments, or draw Social Security? If you don’t know the answers to these questions, for you, not from a website, then you should. There is never a better time than now to see that you are on the proper path to your future. A recent survey found many investors felt that a 8.5% return was not only reasonable but expected. Even more shocking they believed that adjusted for inflation, meaning the average investor believes they should be earning almost 10%. Much of this belief is based on what we have seen in the past, which most economists believe will be difficult to repeat and in the fact that we just aren’t honest with ourselves about risk. In that same survey 75% of those SAME investors consider themselves cautious. I think we can all agree that 10% gains with little risk are not available in your 401 (k).
Will Social Security be lower in the future? Will Healthcare costs skyrocket even more? Will the market sell off? Will your job be there in 5 years? These are all questions we can’t answer confidently right now. That’s not to say you’re helpless though. Too many times we let uncertainty in one situation cloud our judgement in others. While you may not be able to control many things, you can control some very important items that you should be taking control of right now.
Start now by making an appointment to do all of those things you know you should do but haven’t.
Review or Create a will and /or Trust
Review or Create a Roadmap for Your Retirement
Save more Money
Spend less money
Review insurances like Long Term Care, Disability, Health, and Life to make sure you have the proper coverages in place.
You can start now by clicking here to do a quick income estimate to see if you are saving enough to last your lifetime. Then give me a call and let’s get you on the road to a successful retirement.