: Joseph DiSalvo, Marie L. Madarasz
: Income for Life The Retiree's Guide to Creating Income From Savings
: Lioncrest Publishing
: 9781544503196
: 1
: CHF 7.30
:
: Recht, Beruf, Finanzen
: English
: 200
: kein Kopierschutz
: PC/MAC/eReader/Tablet
: ePUB
The most important thing you can do as a retiree, or if you are thinking about retirement, is to develop a well-educated retirement and income plan. Even with the risks of market volatility, longevity, taxes, and unforeseen costs, a correct understanding of how to develop an investment and income strategy can help you face your future with confidence. Income for Life is your guide to converting your retirement savings to income. Drawing on forty years of combined experience in wealth management, Joseph DiSalvo and Marie Madarasz give you a straightforward education in the basics, along with practical exercises, to make sure you're prepared for retirement: from setting goals and budgets, to mitigating risk, ensuring steady and predictable income, how best to seek professional help, and more. Your retirement awaits. Learn to plan for your income in retirement today, and be prepared for whatever tomorrow brings.

Chapter One


1.The Right Mindset for the Big Transition


Recently, we met with a prospective client who seemed, on the surface, to bewell-prepared for retirement. He was in his early sixties and had responsibly saved his income throughout his working years; by the time he started planning his retirement transition, he had well over a million dollars in his 401(k), a small pension and social security.

When we began working with him during that first meeting, though, we discovered that the majority of his savings was in cash, CDs, and bonds. As we’ll explain in great detail later in this book, this type of very conservative allocation can represent an unnecessary challenge to the investor who needs to create a growing stream of income for upwards of thirty years!

This client had had the best of intentions, but he simply was operating with an outdated perspective. He’d followed the popular wisdom passed on to him by his parents and put his money in “safe” places, avoiding the volatility of the financial markets. In reality, he had unknowingly set up himself and his family for an income that will become increasingly difficult, if not impossible, to keep up with inflation.

“Have you given any thought to investing a portion of your money to stocks?” we asked him.

“Oh, no, I couldn’t do that,” he told us. “What if the market crashes? I’ll lose everything.”

This client was petrified of the mere notion of investing in the stock market. He was immensely distrustful of what he saw as a volatile and rigged system, and without any real education in how to handle his investment portfolio, he’d unwittingly made himself and his family vulnerable to two of thelong-term risks a retiree faces: inflation risk and longevity risk, which we will discuss in depth later on.

Moreover, this client isn’t the first we’ve seen with this confused and fearful mindset—not by a long shot. If anything, his mindset is shared by many people nearing retirement.

Where Did This Mindset Come From?


By and large, people operate in afear-based mindset when it comes to their money, and especially when it comes to their retirement income. Some people might not beafraid, necessarily, just confused, because they lack basic financial literacy; but that confusion still l