By Dennis Kagel, Chartered Financial Consultant
A recent study by *Fidelity Investments reveals that the number-one financial concern that pre-retirees and retirees have is running out of money. Within this main concern there are many factors that could contribute to this nightmare becoming a reality. Healthcare costs, inflation, market downturns causing financial losses, rising taxes, and the future uncertainty of Social Security and pensions are some of the main things that cause people to lose sleep at night.
Even though the future is uncertain and there’s a lot we can’t control. There is one important strategy that may increase our confidence and help remove future financial uncertainty in retirement, and that is a solid retirement plan! A successful plan includes strategies that address the accumulation, preservation, and distribution phases. In my 40+ years’ experience in retirement planning, I have learned that many people who do not have a plan continue using the same strategies they used for years to accumulate their nest eggs without taking steps to help reduce risk and protect their hard-earned money. Let’s take a closer look at the characteristics of each of these financial phases of life.
In my professional opinion, the number-one financial mistake people make with their money is they stay too heavily involved in risk at too advanced an age (preservation and distribution phase). When people reach their mid-50s they do not realize that they’ve “graduated” to a new phase of their financial life. Most people in their 50s and 60s (and beyond) continue to take the same (or more) amount of risk they were taking in their 20s and 30s. In my professional opinion, one of the most important things we do for individuals who we provide financial recommendations for is to point out this imbalance in their portfolio and strive to make appropriate recommendations to correct it.
We utilize several conservative strategies to help clients achieve both preservation and growth at the same time. Space limitations prevent me from going into great detail in this article.
Call Dennis Kagel at 309-454-9171 to arrange a convenient time for a no-cost and no-obligation analysis of your current portfolio. He will tell you how much risk you are currently taking, what fees you are paying, and provide you with a tax analysis to help you learn more about future tax implications of your investments. You have everything to gain and nothing to lose.
*Baby Boomers Reveal Biggest Retirement Fears by Emily Brandon Mar. 25, 2011
Investment advisory services are offered through Horter Investment Mgt., LLC, an SEC Registered Investment Adviser. Annuities and life insurance are sold separately through Dennis Kagel Financial Services.