retirement planning

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Financial Advisors confuse Financial Products with Legal Terms

The latest wrinkle of marketing financial products are “Free Seminars”.  The focus is on long term care, protection of assets, retirement planning and estate planning.  […]

When a ‘Retirement Specialist’ offers a Free Dinner – Run!

At least once a week, I get a fancy looking invitation for a free dinner.  The sponsor usually paints himself as a ‘retirement specialist.”  He may say he is endorsed by a religious organization.  The invitation may include a free seminar on retirement planning.

If you are a recipient of one of these invitations, you are probably retired or approaching retirement.  Before taking the bait, however, please consider the following:

First, there is no such thing as a free dinner.  You are being targeted as part of a sophisticated marketing scheme.  The sponsor has targeted you for a reason and that reason has nothing to do with world hunger or doing a good deed.
Second, remember that Jesse James robbed banks because that is where the money is.  Financial planners target retirees because that’s who has investable money.  In addition, most retirees converting a 401k plan to an IRA have little or no experience managing assets.
Third, be under no illusion that the purpose of the dinner is to peddle some type of investment product to you.  Be assured that the sales pressure will continue until you buy something.  The sponsors of these dinners know that most people view dinner as a social event.  People tend to let their guard down.  They may also feel a sense of obligation in accepting something for free.  The sponsors of these dinners are playing a psychological game where the rules have been stacked in their favor.
Fourth, the product most often sold at these dinners is something called a variable annuity.  A variable annuity is a costly and complex insurance product that is one of the most abused products in the financial services industry. […]

Two Biggest Mistakes You Can Make When Planning Your Retirement

We have all seen statistics showing how our population is living longer. U. S. Annuity 2000 Mortality tables reveal that there is a 57% chance that one of a 65 year-old couple is going to live to age 90. We tend to relate to life expectancy at birth, but need to focus on life expectancy during retirement. Proper planning is the only solution. Will the lack of proper planning cost you, your spouse or your children? Are your lifetime income needs realistic? How well have you planned for your senior years? It is like The Good News Story and The Bad News Story:

Good News: You are going to live longer.

Bad News: You are going to live longer.

In my thirty years of helping clients with their planning, I have discovered two very important obstacles to securing the golden years: […]

Investment Performance Is Not An Option

If you are working, you are saving and investing assets for your future use. The most important use is retirement years when your assets produce income that supplements payments from Social Security and company pension plans.

The more assets you accumulate during working years, the higher your standard of living during retirement years. Increased assets also enhance financial security late in life when you need it the most. You cannot have too many assets. […]

Roth Vs. IRA or 401k

There may be a million different opinions about this very subject. There may also be a million right answers to this age old question. The […]

By |September 1st, 2009|Categories: Products|Tags: , , |0 Comments