The Rules Have Changed
For the baby boomers, this is not your parents’ retirement
- Pensions have all but disappeared
- More expenses coupled with longer life expectancy
- Compounding factor of economic uncertainty
Investors must have a clear understanding of today’s most common retirement concerns
- Health care
- Investment volatility
- Rising taxes
- Working in retirement
How can you gain perspective and uncover hidden opportunities behind these concerns? By working with a financial advisor, you and I are able to discuss strategies to help you address and plan for the unseen issues you will face in retirement.
Consider the following:
Will your savings be enough?
- A person who turns 65 in 2015 is expected to live 18 more years1
- A $60,000 per-year lifestyle today will cost approximately $120,000 in 20 years2
1 OASDI Trustees Report, 2010
2 NewRetirement.com, “Inflation Can Devastate Even a Good Retirement Plan,” 2011
How much will my future income be affected by taxes?
- Scheduled expiration of Bush-era tax cuts in 20121
- Further tax increases likely
- Current rates at 70-year lows
- Federal deficit projected to hit $1.6 trillion2
1 Andrew Friedman, “Investing in a Rising Tax Environment,” 2010
What if the markets look like this during the first year(s) of YOUR retirement?
- Could your current portfolio withstand a decline of more than 15-20% in the markets?
- Do you know which asset classes should be in favor and most likely outperform if the broader markets decline substantially?
- Have you stress tested your portfolio for these very real conditions?