Asset Protection or Asset Speculation, which should you choose?
After practicing in Safe Money for close to 30 years, one thing is true when it comes to those that are approaching or in retirement. The old fable, a bird in the hand is worth two in the bush.
As Baby Boomers grapple with the forces of time, one thing rings more real than ever in today’s volatile markets. The need to formulate a plan centered around Asset Preservation vs. Asset Speculation.
Early in our working careers, the name of the game is finding a good income and working hard to save every extra dollar we can salt away for retirement. Accumulation potential and risks are hallmarks of growing money. The difference is the time we have to ride out all the ups and downs of the market.
But a funny thing happens on the way to Toledo, somewhere around our early 50’s the realization starts to set in. What am I going to do to make my retirement money last and be safe throughout retirement?
The crashes of the early 2000s and 2008 had a devastating impact on investors who were retirement age when those crises hit. What’s the big deal? The markets have come back and then some. For those retirees or those on the eve of retirement, those losses cost them dearly in time and income.
If you were to ask someone today about the next impending stock crash, what would they say? Well, one thing is sure, we are all 11 years older than in 2008. This means that for those who are in their mid 50’s or up, the next correction could set them back in terms of a retirement date or the ability to take income when their net worth is being eroded by stock loss.
Imagine the angst, the fear, the worry of not being able to take the needed money from your IRA or 401(k) or retirement savings in years where the market declines. By paying fees and losing money with downside loss/risk, taking an income in those down years can compound the losses and jeopardize a retirees standard of living.
With the right planning and vision, those scary scenarios can be avoided altogether. Ask yourself this question, “Are my investments only concerned about gains?” If the answer is yes, then there is never a better time to sit down and visit with someone who focuses on making your money grow and last while making sure you will never run out of income no matter how long you live.
Asset Preservation is all about addressing the risks in your portfolio. Making sure you have enough money safe and with guarantees of no loss with lifetime income for you and your spouse. Remember the fable.
A bird in the hand is worth two in the bush. This fable warns us against taking unnecessary risks, especially in retirement. Logic tells us it is better to keep what you have (a bird) than to risk getting more and ending with nothing.
Living on retirement savings, coupled with living longer, are genuine causes of concern.
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