Were you aware of these 2 retirement challenges?
Will you have enough money to retire on time and live in the same lifestyle you are currently accustomed to? It sounds like a simple yes or no question but many people today have no idea where they stand. The importance of sitting down with a financial advisor – face to face – to discuss your specific situation can not be overstated. If you are not on track, working with an advisor to develop a well thought out plan can really help.
Listed below are a couple of retirement challenges that most people are unaware of:
1. Most married couples are not aware of the approximately $20,000 a year loss of income that is unavoidable in retirement. When the first spouse dies the remaining spouse gets to keep the higher of the 2 Social Security checks but loses the lower one. This usually amounts to a loss of $20,000 a year, every single year for the surviving spouse.
Unfortuneately most people are unable to withstand a $20,000 loss of income during retirement without making drastic changes to their lifestyle. A carefully thought out retirement plan makes this very difficult time a little easier to deal with.
2. Another big challenge today is that most people are paying a 1% wrap or management fee to an advisor every single year. That may not seem like a big deal, but if you are paying an advisor 1% a year – in just 30 years you will have paid out 30% or 1/3rd of your entire portfolio. This usually amounts to tens if not hundreds of thousands of dollars that most retirees today definitely need.
That is a good “guarantee” for the advisor, but the client’s returns are not guaranteed and are far less certain; especially when paying out 20 – 30% over a 20 – 30 year timeframe. There are many other fundamental investment options available that do not carry with them a 1% ongoing fee.
If you are not sure if you are on track for a successful retirement a complimentary retirement plan review may be a good idea. It will normally take about an hour to complete and at that time you should have a good idea whether or not you are on course. If it appears you may not have enough money for a 30 year retirement we can discuss several good solutions that may help.
Call or stop by to see how I may be able to help you achieve your financial goals.
Edward Jones Investments
15029 N Thompson Peak Pkwy
Scottsdale, Arizona 85260
*Making Sense of Investing