Money Matters (August 2017)
By Chuck Dudley
“CHECKING ALL THE BOXES”
There’s that topic again………….retirement! For folks my age, it’s a rapidly approaching event.
However, recently I read an article about retirement planning switching to ‘second career planning’. What that means is my generation decides to not fully retire, and considers taking another job for compensation, fulfillment and work happiness. Doesn’t really seem too far-fetched!
Absent of working in a different direction in one’s 60’s and 70’s, it still makes sense to have your retirement plan sketched out. And that’s what today’s newsletter will ask you to do…………a little sketching!
All of us have assets……….stocks and bonds, mutual funds, real estate, 401ks, IRAs and the like.
In order to see where you might stand, I’ve always found it helpful to draw a picture. In this case, your assignment is to draw your boxes and see where you are.
BOXES OF ASSETS
Just like all those boxes of keepsakes you have stored away, you also have financial assets that we will place in our boxes.
As with all assets, there are risks and rewards, and your job is to look at the amount you have. Then, write down the rewards from those assets…………..and the risks.
The rewards obviously are growth, tax-deferred growth, income and certain others.
Your risks are market risk, tax risk (a biggie), inflation risk, health risk.
So here are your boxes:
THE ONE MISSING BOX
As you can see, there is one box with question marks in it. Is it a mystery? Is it the Holy Grail of investments? What might be so important about this mystery box?
Logically, this box should be one that does not have the risk characteristics of the others. It should not be affected by the market ups and downs. It should be a buffer in the times of market fluctuations.
Think about the market crash of 2008-2009. What would you have done when assets decreased 20% to 40% during that time frame? Even worse, what if you had worked all your life and retired in 2008?
Many did, and it was not a pretty sight.
Also, what about your health during this period? The odds are that from your late 60’s into your 80’s, things are going to change health wise. Some articles say that it might take $300,000 to $400,000 in care for some boomers. Most of us have stories to tell about our parents with regard to this.
So Chuck, what’s in that missing box?
Well, I know the answer, and I know what it can do for you.
But to find the answer, you have to do one more thing.
You have to call, write, email or text!
If you really want to make sure you have right ideas for moving forward in a positive manner, we will listen. We’ve been able to help families and businesses learn to use money wisely, and we’d like to help you too. We would be honored to visit with you about how to help you and your business.
An hour of your time spent analyzing your situation might make a lifetime of difference
Arkansas Insurance Producer # 1005698
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