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Pursing Life Time Income During Retirement

One of the biggest fears people have when approaching retirement is do I have enough, will I run out of money. We help you build a step by step retirement plan that shows you how to pursue life time income throughout different stages of your retirement.  

When trying to pursue life time income during retirement we focus on these major points:

  1. It's hard to enjoy all the money you have saved if God forbid your health declines sooner than later.   Do whatever you can to keep your physical & mental health in good shape
  2. Prepare for a Long Term Medical Care Risk and its possible financial, time and emotional impact on your family if you or your spouse needs around the clock medical care that is not covered by normal medical insurance.  These costs could be as high as $90,000 a year that would have to come out of your own pocket if not protected.
  3. Prepare for Social Security and Medicare to have substantially reduced benefits by 2040
  4. Prepare for a rising cost of living with normal day to day living and healthcare costs by having investments that hedge against inflation.
  5. When you get 5-10 years from retirement, consider preparing for another potential long economic downturn by having your first 16 years of living expenses in 2-3 buckets of more conservative strategies that you can access during your first 16 years of retirement. That way you can invest the remaining portion of your assets more aggressively to pursue growth above the cost of living increases, savings accounts, checking and CD's.

The truth is Market Timing/Predictions on a long term consistent basis hasn't been achieved by any great investors & economists regardless of their experience and education.  Even if they happen to have predicted a previous cycle doesn't mean they can do it again. Therefore, in retirement you need to pursue a portfolio that strives to last in various world economic / stock markets scenarios such as:

  1. One where the economy and company earnings are increasing rapidly, new inventions, ideas are abundant. Investors are feeling confident causing world stock markets to potentially increase dramatically in the next 1 to 5 years.
  2. The economy stagnates over the next 2-5 years, markets go up and down slightly and finally increases dramatically.
  3. A depression very similar to 1930’s or a recession similar to 2008-2009 occurs and the market drops substantially, but eventually recovers 5-10 years from now and we are at least at current levels & somewhat higher in 10-15 years
  4. A natural disaster, terrorist attack or civil uprisings in U.S and across the globe happen, markets fall drastically from current levels, society reverts back to a mostly agrarian/barter society. Self Reliant, innovators are the survivors. Modern Markets recover in 20 years.

*The examples above are hypothetical examples and is not representative of any specific investment.  Your results may vary.

Another fact is all the active money managers have a hard time of just beating a diversified stock index. 

A 15 year study from June 30, 2003 through June 30, 2018 completed by Standard & Poor’s shows that simply just owning the S&P 500 Stock Index outperformed about 83% of all active domestic money managers. Even the 17% of active money managers that did outperform can’t guarantee they will outperform the stock indexes going forward.  Nor can they promise to give you back any of your losses if we run into another 5 year span from 2003 to March of 2009 where the S&P 500 dropped over 30% *** All the while they are collecting fees from you.

*** According to a report called "Patience Rewarded" from which was sourced from Mellon Analytical Solutions, July 2015

Therefore to Pursue Life Time Income During Retirement we help you identify when you will need certain assets throughout your retirement. Once we identify when and how much of your assets will be needed, we then can determine what suitable assets might be used towards Pursuing Growth, Life Time Income, Preservation and strive to Lower your Fees in the following buckets below: 

1) Lifetime & Other Income Sources ie... social security, pensions, annuities, rental or small business income etc...

2) Liquid Assets you might need within the next 7 years

3) Assets you might need to use in  8-17 years

4) Assets you might need to use in 18-24 years

5) Assets you won't probably need to use for 25 years and beyond


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