Our Strategy to Make Your Retirement Planning Easier
Retirement used to be a time that was eagerly awaited for by most Americans. A gold watch and a nice pension were the rewards for a lifetime of service to a company. That pension combined with Social Security and some savings, enabled most to live their golden years with some sense of financial security.
Sadly, those days are gone. With the coming extinction of the traditional pension and the uncertainty surrounding Social Security and healthcare costs, planning for our retirement income needs is just not that simple anymore.
Choosing and implementing a strategy to fund your income needs during retirement is one of the most important financial decisions you will make
Properly executed, the right strategy can enable you to live the retirement you imagine while the wrong strategy could lead to the nightmare of running out of money.
Unfortunately, most retirement income strategies fall short in the long run. That’s because most are built around a single type of investment or financial product.
A portfolio or financial product is NOT your retirement plan
This distinction is lost on most people. It’s not surprising. Traditional planning focuses on what financial products or investments you should have. This “market first” thinking has been conditioned into us by the media and the commercials from the financial service firms. We are led to believe that their product, service or online tools are all we need to secure our retirement.
The success of these products is most often based on fuzzy math or rosy projections that most people don’t really understand but go along with anyway. They make very compelling cases for their products through the use of great advertising that gets you to act. Unfortunately, this product first mentality usually leaves you exposed to the financial and psychological effects of the market (think 2008) or the ravaging long-term effect of inflation on your purchasing power.
This approach is designed to appeal to either your psychological desire to be involved in the market or your fear of the market. They rarely look at the real issue – how to make sure your money will last.
Have you unknowingly put your retirement in jeopardy by relying on a product that will only be able to achieve your goals in a perfect world?
How would you like to wake up every day knowing that whatever happens in the world or the market, your bills will be paid and your retirement secure?
That’s our mission. That’s what drives us. After all, isn’t that the primary role of retirement planning?
At AGS Aurora we put strategy first for the families we serve. We know that your plan for retirement income needs to work under any financial condition. After all, should your retirement change every time the financial markets change?
A strategy based on my 30 years of market and financial experience – not sales
In order to be financially successful in retirement you must have three things from your money – income, growth, and liquidity. Each dollar must have one of these as its purpose. Understanding how much needs to be allocated to each purpose is where the work gets done. It is the key to your success and something that never happens when you put product first.
Income: This is how the bills get paid every month. Your monthly retirement paycheck will include income from Social Security and pensions (if you have one). We need to provide for the balance in a way that cannot be affected by changes in the market or the economy. This is where allocations to products that can provide guaranteed income1 without market risk will be used. How does it feel to never have to worry about paying the bills?
Growth: You must have money that will grow over the long-term to provide inflation protection for your income and to perhaps provide a legacy for your children or grandchildren.
Liquidity: Often overlooked, this is your emergency fund. You need money to handle those unforeseen expenses that will always occur in daily life as well as being able to have a few bucks to do the things you want to do, when you want to do them.
Your strategy is engineered to ensure that each dollar is allocated to the purpose that enables you to achieve your unique retirement goals. But that’s just the beginning. When and how your dollars move from one purpose to another and what financial products and investments are used is how we are able to manage your financial risk. We are all aware of market risk but it is the many other risks that you are probably not aware of that will cause the most damage.
Do you have a strategy or just a product?
If you’re ready to get serious about your financial future click the button below to schedule your complementary 30 minute consultation to see how a retirement strategy engineered by AGS Aurora can help you live the retirement you imagine.