Call us 610-648-0700Get in TouchClient Login

"A Goal Without a Plan Is Just a Wish"
-Antoine de Saint-Exupery

   

Blog

Is There a Right Approach to Retirement Spending?

The solution to retirement spending isn’t easy. There isn't one perfect solution for everyone. Three potential approaches include immediate annuities, a total income approach or a total returns approach. While each of these solutions have their pros and cons, we strongly favor the total returns approach in most situations.

"The Dirty Dozen"

Top Retirement Planning Mistakes

Here is a list of what I'd consider the top mistakes people make for their retirement planning:

Retirement Planning Challenges

To follow up on my latest post regarding retirement and the importance of planning ahead, there are a number of things to consider. The biggest challenge is to create a lifelong paycheck, one that allows you to live the lifestyle you envision for yourself in retirement.

Are You Ready to Spend?

One of the most difficult aspects of retirement, is the mental switch required to go from a saving mentality to a spending plan. After a lifetime of putting aside money for the future, it's not easy to start spending down that savings. When they're no longer receiving a regular paycheck, many retirees find it hard to transition from saving to spending.

Trading as a Long Term Strategy

The most recent Dalbar study continues to show that people who trade in their 401(K) plan, lose ground when compared to those that don’t.

Spending Within Their Means?

 I find it fascinating to watch the Illinois budget fiasco being played out like a game of chicken between the Governor and the Senate. The Senate just overrode the Governor's veto of a tax increase. While this is good to stave off a downgrade to junk status, it is not so good for the citizens of the state.

Will My Taxes Go Down in Retirement?

That’s a very common assumption that many people make. Based on the idea that taxes will go down over time, they decide to take as little as possible from retirement accounts and spend their taxable money first. For some people that works fine, but for many it becomes a tax trap.

Pension Funding Gets Worse

Wilshire Consulting calculates the funding ratio for State sponsored retirement plans every year. For the year ending June 30, 2016 (the most recent) the average funding ratio, or the amount of pensions that have the money to pay, dropped to 69%.  What this means is that either taxes will need to be raised dramatically to make this up or future pension benefits dramatically curtailed.

Management by Crisis

Underfunded state pensions are a threat to taxpayers everywhere in terms of probable higher future tax burdens and lower future services. In California, they talk about a "service bankruptcy". That is where all the tax dollars at some future point go to paying benefits for retirees with no money left over to spend on any of the services government provides.

New Requirement for 401(K) Plans

I am glad to see the new requirement for investment advisors dealing with 401(k) plans take effect. Now advisors have to acknowledge their fiduciary status in writing and subscribe to an impartial standard of conduct. The big keys are that under these new standards, these advisors must:

Latest Blog Posts

Aug 18, 2017 by Structured Asset Management, Inc.

The solution to retirement spending isn’t easy. There isn't one perfect solution for everyone. Three potential approaches include immediate annuities, a total income approach or a total returns approach. While each of these solutions have their pros and cons, we strongly favor the total returns approach in most situations. Here's a look at each of these and their pros and cons.

Immediate Annuity Approach: you turn your...

Aug 07, 2017 by Structured Asset Management, Inc.

Top Retirement Planning Mistakes

Here is a list of what I'd consider the top mistakes people make for their retirement planning:

  1. Not Having a Plan
  2. Bad Annuity Decisions – there’s a reason annuities are sold and not bought
  3. Failing to review investments - being too aggressive or too conservative
  4. Bad Social Security decisions - this should be just part of your plan, not an entire plan
  5. Overspending is a game...
Aug 04, 2017 by Structured Asset Management, Inc.

To follow up on my latest post regarding retirement and the importance of planning ahead, there are a number of things to consider. The biggest challenge is to create a lifelong paycheck, one that allows you to live the lifestyle you envision for yourself in retirement. To accomplish this, it should be structured so that it lasts your (or multiple) lifetime(s), is paid on a regular basis, takes inflation into account and is relatively stable. Each one of these factors could be a whole...

Syndicate content
Website Design For Financial Services Professionals | Copyright 2017 AdvisorWebsites.com. All rights reserved