This week’s article about retiring is written by a psychologist who has researched perception and applied that knowledge to financial situations. The author tells us “By the time most of us reach retirement age, we feel as if we don’t have enough money to live the life we envisioned. Our feelings aren’t wrong.” Before COVID, the reasoning was that “so many of us start to prioritize retirement savings too late in life.” Now, another reason has been added with is that we may have lost enough of our retirement portfolio that even were we planned well, it still isn’t enough. We have some ideas to help, call us to learn about how to use some of your savings to get an income you can’t outlive.
We can’t control the impact Covid-19 has had on our savings, so maybe it’s time to come up with a plan and move forward. Yahoo finance shows us that the stock market is down 20% to 30% from the beginning of the year. The bond market is flat or down and not offsetting the stock market losses. The yield on the 10-year Treasuries has been below 1% for weeks. If we apply all of this to a typical IRA or other retirement account, most likely the losses are more than 15%. This means that whatever percentage you were planning on withdrawing in your retirement either has to decrease, or what you end up with is less. Either way we need to talk. It’s time to come up with a plan on plugging that hole. Call us, we have some ideas.
We’ve always told you that we are here to help. That means in connection with choosing retirement savings options that make you feel good about your future. But that also means to provide assistance in any way we can while you are staying at home. Need help with something? Call us, we are here for you.
You don’t have the Virus but your losses are still huge
We are receiving calls from clients fearful that their market losses are going to require them to claim social security benefits years earlier than they had otherwise planned. This has an impact on their long term income [i.e. the sooner you collect, the lower the amount monthly], but there are ways to supplement that lower income stream using savings you still have. Call us if you’d like more information on the new Covid-assistance bill that permits you to withdraw funds from some types of retirement accounts that prohibit you from purchasing an Annuity that would provide you with an income stream you can’t outlive, and moving those funds to a different retirement account where you can make that purchase. Call us if you’d like more information on this. We’re always here to help.
With all that is going on in the market with the Coronavirus, we have received many requests to give our opinion on how long it will take for a retirement savings to get back to the level it was before the virus took its toll on the market. Understanding that no one can predict what kind of return anyone is receiving on their savings, and knowing that returns are always investor specific, what we can do is provide you below with the mathematical formula for you to apply to your own situation, and under your own assumptions.
Concerned you’d need too many years? Call us. Maybe it’s time to protect a portion of what is left of your retirement savings from more loss. We have some ideas that you may want to know about.
Financial concerns stemming from the coronavirus outbreak have saturated the thoughts of anyone with a retirement nest egg set aside. The coronavirus has had an undeniable impact on any of us who are in retirement or who are, or were, contemplating it in the near future. Call us, we’re here to offer out some options that can help with your retirement cash flow. We’re always here to help and are standing by for your call.
I found this week’s article full of interesting information, and was drawn to the opening paragraph that I thought to share with you. “As we progress through life, we find there are certain things we can control and others we cannot. However, even with the things we can’t control, we can exercise good judgement based on facts, due diligence, historical patterns and a risk/reward calculation. These strategies play an important role in retirement planning. When it comes to accumulation, spending and protecting your nest egg, financial analysts rely heavily on safety and probability planning strategies.” The author goes on to discuss how one “safety” contract “is an income annuity, which offers the option to pay out a steady stream of income for the rest of your life and the life of your spouse – even if the payouts far exceed the premiums you paid. This is a way of ensuring you continue to receive income even if you run out of money”. Take a look at the article, and give us a call if you would like to talk about options like this. We’re always here to help.
This week’s article references how setbacks can affect family decisions, and finances, at every live stage, but it tells you to “Get back on your financial feet even if you’re getting a late start.” We agree. It is sometimes daunting to reestablish financial security after struggles, whether they have been from job downsizing, increased expenses relating to helping out other family members, or unexpected health issues. Regardless, it is important to start again. We’re always here to help, so call us if you’d like to talk about your choices, no matter where you are in your planning.
We often hear that “the key to feeling confident about a comfortable retirement is an employer plan”, but what if you don’t have one? I thought to share this week’s article with you because it discusses how to build your own, and compares the various options, including a solo 401(k). Call us if you’d like to talk about it, we’re always here to help.
By continuing to use this website, you agree to these updates.
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.