Archive for Retirement planning

7 Deadly Sins of Retirement Financial Planning

This is an article I wrote back in 2008 which, till this day, is still very applicable. Enjoy.

7 Deadly Sins of Retirement Financial Planning

…and Virtues That Cultivate a Gainful Financial Game Plan

Retirement-based financial planning takes far more than faith…it takes action. And, investing one’s valuable retirement dollars “on a wing and a prayer “ can wreak havoc on even of most well-intentioned plan. Knowing what pitfalls to avoid can make all the difference in securing a heavenly lifestyle for your golden years.

With this in mind, the following are 7 Deadly Sins to avoid at all costs when planning for your financial future, along with enlightening common sense tips to help would-be wealth seekers get on their way to the financial promise land:

1. Pride. Ditch the “I can do it on my own” mentality. Rather, seek out a retirement-specific financial planning expert who can help ensure your hard-earned savings have the greatest potential for growth. Although professional fees will be incurred, the old adage of “pennywise and pound foolish” could not hold more true.

2. Envy. Comparing how much you have built up for retirement to others can either cause you to get discouraged and give up on your efforts, or get overly complacent and slack on your planning. It’s far more important to develop – and stick to – a sound game plan structured to attain your distinct retirement lifestyle goals.

3. Anger. Harboring anger at the government for the impending insolvency of Social Security, or the mounting threat to corporate pensions and retirement benefits will not secure your retirement and is, therefore, wasted energy. Instead, take charge, assess where you are in terms of your current assets and liabilities and how they are tracking toward retirement. Resolve yourself to do everything required to generate retirement asset ROI to better ensure your senior lifestyle goal.

4. Greed. While gambling is fun in Vegas – even with a few losses along the way – the same does not hold true with your retirement savings. Taking unnecessary risks, chasing a ‘hot’ stock tip or mutual fund, or buying ‘junk’ bonds or any number of other speculative ventures is a certain way to lose what you have worked so hard for – and need to sustain you through your golden years. With retirement planning, it’s imperative to reduce risks to the fullest extent possible, ideally with principle guarantees, using proven investment strategies in order to attain your financial goals.

5. Sloth. Going the lazy route and resigning yourself to being dependent on others during your senior years need not be your fate. The truth is, no matter what your age or how much, or how little, you have in the way of assets, it is NEVER too late to start saving and planning for retirement – but it does take a bit of motivation. While late planning may take a higher level of drive and creative strategy, you will certainly be in better financial shape, feel better about yourself, and enjoy retirement a lot more than if you did nothing at all.

6. Gluttony. Spending every penny you make and then digging an even deeper grave through acquiring excessive debt is a recipe for disaster. Recent problems with leading U.S. corporate pension programs have underscored the extent to which one cannot depend on so-called safety nets. It’s imperative to set up a plan that first serves to eradicate debt and get sound retirement planning fundamentals in place. Once the plan is in place, be sure to infuse it with additional funds on a regular basis – at least once a month is advisable.

7. Lust. We live in a culture where instant gratification is not only revered but, all too often, is expected. Over indulgence can rob you of valuable resources needed to secure your future, so don’t have a short-term outlook on life. What will work is strategizing a financial game plan with a qualified professional, implementing that plan, and staying the course no matter what temptations may present along the way.

Ensuring a comfortable retirement in today’s volatile investment climate is daunting, but it is also achievable with the knowledge of what to do and, as important, not to do. Even when using a financial advisor, it’s imperative for seniors and others saving for retirement to avoid complacency and be actively involved in their financial planning to ensure their unique and personal needs are being catered to.

At the end of the day, a cookie cutter financial plan is the deadliest of all sins, as no two individuals will have identical needs, goals, and resources. If nothing else, heeding my retirement planning ‘7 deadly sins’ warnings will help individuals preserve hard-earned assets and maximize the retirement income stream they want and need.

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January 6, 2010 · Filed under Published articles, Retirement planning

Two weeks in

The Financial Lifestyle Show has been a blast and it’s only the beginning. Dr. Friday and I have had some good response (but it could always be better with your help!) and we’ve had some great topics to discuss.

Week 1′s show, we had a caller who called and asked about his numerous rental properties and he wanted to know what his best option would be to sell them and minimize the taxes he could incur.

Here’s the link to the podcast so you can give a listen to our discussion.

For those of you who missed this past Sunday’s installment or if you would like the full show to download, visit the Financial Lifestyle Show media page here.

We will be airing the show live as always this Sunday. Right now we’re giving away financial planning advice booklets. Topics range from “How the Smart Money Invests,” “IRA Mastery” to “Long Term Care Planning.”  You can get your own booklet here.

I really appreciate the support you all have shown, it’s been wild so far and I can’t wait for it to get wilder.

The Financial Lifestyle Show airs every Sunday morning at 10a.m. till 12 noon on WLAC, 1510 AM.

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September 1, 2009 · Filed under Financial Lifestyle Show, Retirement planning

10 Strategies for Late Retirement Planning

This is an oldie but a goodie. I wrote this in 2005, had it picked up by the Associated Press and it’s been published in some online zines and financial planning sites. It’s still quite applicable today. Enjoy!

Each and every day “fifty-something’s” throughout our nation come to the cold, hard and often sudden realization that not only is retirement, gulp, merely a decade or less away, but also that they are not as financially prepared for their golden years as they had hoped to be. Far too many middle aged Americans are approaching senior citizenship without any financial nest egg to speak of – an understandable concern for those intending to maintain the same standard of living they had prior to retirement.

If you are retired, or getting close to retirement, your goals are likely shifting away from asset and wealth accumulation. Now your needs are asset and wealth preservation and income generation. To achieve those goals and live the retirement lifestyle you want, you need to evaluate your financial resources in a very different way than you did during your working years.

For those in the worrisome predicament of having relatively little time to get their financial ducks in a row before retirement is upon them, here are five approaches for late retirement planning success and, as importantly, five distinct pitfalls to avoid:

Late Retirement Planning Strategies:

o Take stock. Assess where you are – financially speaking – right now. What is your current income? What are your current expenses? What assets do you currently have and what, if any, debt? This information is imperative for mapping out your financial future, as you won’t know where to go if you don’t know where you are.

o Dig deeper. Next, attempt to identify income-generating opportunities and potential risks you may face. How can you eliminate any debt as quickly as possible? Do you anticipate any major increases or decreases in income or expenses? Are there any specific medical issues to deal with and/or plan for?

o Forecast. Look ahead to where you intend to be based on your current path or plan. What can you count on in ten years? Will you have pension, Social Security and/or other income and, if so, how much? How much income will be needed from investments to cover living expenses and when?

o Develop a financial game plan. Discern what available investment vehicles will improve the likelihood of having the lifestyle you desire with the least amount of risk? What is the minimal amount of return on our investments necessary to attain your goals? If you can attain your goals without, or with very little, risk, why put your retirement funds in jeopardy to chase higher returns? The best plan will account for inflation and taxes while preserving principle.

o Pull the trigger. Once you have developed a solid financial game plan, implement those strategies ASAP and stay the investment course – with just 10 or fewer years until retirement, time “is” of the essence, after all, and looking for greener grass is a sure-fire hazard. Monitor your investments regularly to ensure all stays on track toward your goal.

Late Retirement Planning Pitfalls:

o Failing to make a plan. Any plan is better than no plan at all, even if it’s somewhat minimal and won’t necessarily get you where you had intended to be. In the end, it’s ultimately about survival, and having no retirement financial plan at all put your fate in the hands of others who may or may not share your same views on “quality of senior life”.

o Chasing the “golden carrot”. Chasing high returns at all costs, taking unnecessary risks, and speculating as opposed to investing – all sure-fire ways to watch your retirement dollars dwindle. Far too often we hear of those who lost their retirement nest egg and had to get back into the work force to survive. When done correctly, the high risk, high reward stock market is one good investment resource, but by no means should one put their retirement nest egg in that basket alone.

o Not foreseeing the unforeseen. Plan ahead for potential risks, such as high medical, insurance, prescription medication, and long term care expenses. Know what your options are with respect to Medicare and otherwise, which will be critically important once employer-based benefits are no longer available.

o Thinking a Will will suffice. Beyond the will, it’s also important to have a durable Power of Attorney to protect you from potential financial hardships of living probate. In addition, a Healthcare Power of Attorney and a Living Will can help you avoid heartache such as that publicly witnessed with the Terri Schiavo case.

o Going it alone. Those who have ten or less years before retirement and have not made any notable strides in securing their and their family’s, financial future should seek the advice of a credentialed investment expert who can create a solid and often custom-tailored financial plan. Optimally, choose a financial advisor with multiple designations who specializes in retirement-based investing and is expert at safely preserving, protecting and proliferating retirement assets.

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August 27, 2009 · Filed under Retirement planning

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