Retirement Assumptions: What’s Your Legacy Goal?

When you are building out your long term retirement plan, a financial advisor will often have to make many different types of assumptions. I have authored numerous articles around this topic. You need to consider market downside risk, interest rate risk, inflation risk, liquidity risk, tax risk, sequencing risk, and several others. Often, one major mistake made around the discussion regarding building a quality retirement plan is actually having the end in mind. What do you want your legacy to be when you pass on? This is a crucial conversation to have at the onset of your overall comprehensive financial plan. Consider this for a moment. If you tell your financial advisor nothing, he or she will likely build out your retirement plan analysis by using a ‘death age’. From the conversations you have with your planner or from some default number in the financial planning software, you will arrive a set age usually in the 85 to 90 range. ...

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How Can My Portfolio Completely Avoid Risk?

With Moody’s Investment Service downgrading more than a dozen global banks to reflect declining profitability, the Euro Zone looking to be in grave financial crisis, and the U.S. Economy having a gloomy shadow in the distance, many investors are asking how to find investments that carry no risk.    Some of these investors are folks that are retired and looking for current income while others are at the 20 yard line approaching the end zone of their retirement day.    So where do you find an investment that carries no risk? Unfortunately, every single type of investment carries some inherent risk.    Learning how to balance out that risk or being timely with your investments on knowing what risks to take at what time can ultimately determine success or failure in your overall investment plan.   When it comes to today’s main risks facing investors, here are the three big I’s with respect to investing and risk. Inflation Risk– Inflation risk, sometimes known as ...

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