Today's Retirees Need a Team of Financial Experts
Novers Financial co-founder Brady Speers explains why those facing retirement need to consider the obstacles ahead that likely require assistance.
PR9.NET March 28, 2013 - HOUSTON, Texas - I love sports but to me team based sports are the most entertaining and few teams win based on the efforts of just a few. The best teams win as a team.
With nearly 75 million baby boomers and older baby busters entering or preparing to enter retirement those that truly succeed will need to have a team of experts helping them. In today's economic climate, there are simply too many issues for someone to "go it alone" and have much chance of getting it right. Let's take a brief look and consider the following six issues retirees face today or in the near future.
Low interest rates. There is no doubt that we are living in financial times few alive have experienced. With the U.S. 10 year treasury hovering around 2% it's no wonder gains on safe, conservative investment options such as CDs and annuities remain so challenging. We haven't seen interest rates this low since the Great Depression and no one is real sure when rates will trend back up. This leaves retirees in a real situation in which their investment gains aren't enough to offset living withdrawals or purchasing power.
Flat investment gains. Many investors today that I speak to tell me they are excited to finally get back from where they were in 2008 or 2009. The problem lies in the fact that since 2001 few in traditional investment vehicles have gained anything of substance. The roller coaster ride the stock market has been on gives and then it takes. I call it the "Wall Street Waltz" meaning you gain, then you lose and we all remember how much it hurt 5 years ago. Retirees face the morbid fact that they have wasted nearly a decade and now have fewer birthdays in front of them than they do behind them.
Sky rocketing healthcare costs. The storm on the horizon few experts want to talk about is the rising cost of healthcare and the long term care catastrophe that many will face. Too many retirees falsely believe Medicare will cover those costs. That's not quite true. In fact, Medicare will instead devour your assets first through "Medicare spend down" leaving many retirees penniless in the end. With recent changes in the "look back" period, estate planning has to be done at least 5 years ahead of time to have a chance at avoiding this terrible disaster.
Increased inflation concerns. When interest rates rise again, and certainly they will, there is a strong likelihood we could face increased inflation. Some are even concerned about a period of "hyper-inflation" such as what Brazil experienced in the 1980s. Again without proper income planning now, a future inflationary period could decimate an income base a retiree may incorrectly assume would last their lifetime.
Increased longevity. More people are living into their 90s than ever before as medicines and senior activity levels prolong our lives. This is a great thing but a married couple retiring at age 65 should assume that one of them will live another 30 years when planning out their income forecasts. Some might consider working a few years longer than expected or maximizing their Social Security benefits.
Social Security changes. For those above the age of 55 drastic changes are unlikely for their Social Security benefits, but no one is certain and with the current level of national debt if something doesn't change many wonder if those benefits will be meaningless for a variety of reasons. The key to a robust retirement plan is to get every dollar you can out of Social Security and this takes some guidance to be done correctly.
All of this being said proves my point – today's retirees should strongly consider getting some help. Having spent their entire lifetime working hard to accumulate what they have for retirement, they simply have not had the time to learn all of the things necessary to navigate their own way through these issues properly and time is of the essence.
As I tell my clients all of the time…you only get one chance to get this right, so make sure it's right.
Find someone you trust that has access to or a team of experts that can help you properly work through this obstacles. The good news is that it can be done.
The bad news is without a good team, you could face a losing season.
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About Novers Financial
Novers Financial was founded by Brady Speers and Chris Novinger in order to provide financial assistance to those in need of retirement planning through the power of annuities.
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