Retirement Planning for Baby Boomers

» Posted by on Aug 26, 2011 in Retirement Planning, What Makes Us Different | Comments Off on Retirement Planning for Baby Boomers

Baby Boomers!

A unique generation. We Boomers have  faced many challenges together.

Now we’re confronted with the challenge of retirement planning – most of us within the next 10 years or less.

These are turbulent times.

We’ve been through turbulent times before.

So what are some of the Retirement Planning Issues that confront Baby Boomers?

(The Wade Agency will perform a calculated projection of how your current retirement plans are likely to play out under the best and the worst of circumstances. There is no charge for this service and the projection can be run again anytime your circumstances change. Just contact us to set up an appointment).

Social Security

Most of the experts believe that those of us who are 55 and older will receive our Social Security benefits, even if there is a major restructuring of the ‘entitlement’

When to take Social Security?

The Wade Agency offers Baby Boomers information and services that will help you to determine the optimum timing of Social Security (See Social Security Timing ).

Investment, Protection and Distribution of Retirement Funds for Baby Boomers

  • In the last 75 years, the S&P 500 grew 10.37 % per year (Compound Annual Growth Rate).
  • In the last 10 years, the S&P 500 grew 1.31 % per year (Compound Annual Growth Rate), or -1% adjusted for inflation.

So it seems that the Securities Market is a Great place to put money for the Long Term.

Time smoothes out the bumps.

What about the money we may need in the next 10 years?

We might call this
Low Risk Tolerance Money.

We Boomers will want to find a way to Insure from Loss the money we’ll need in a shorter time-frame and still enjoy growth when the market grows.

During the last 10 years, when the S&P 500 grew 1.31%, many Insured Retirement Investments are back tested to yield over 5% (during some of the worst of times in this generation), While they are insured against loss.

The choices:

  • 10.37% growth if you have many years to let it grow
  • Possibly 1.37 growth, or worse if you need you money in the next 10 years
  • Guaranteed growth, Guaranteed principal, average growth over 5% if you need you money in the next 10 years

The Strategy for Baby Boomers:

Since investments that have significant growth potential by nature can have short-term volatility and actually lose value in a 5 or 10 year period, we find an investment vehicle that is insured against loss and still offers some of the growth that the market enjoys during the good times.

The Rule of 100

A ‘rule of thumb’ that is generally accepted that says that you should subtract your age from 100 and the difference is the percentage of your retirement money that can be in the high risk/high gain category. For example, if you’re 55, the rule implies that 45% of your money can be in high risk/high gain investments and that the rest should be in very secure investments.

With today’s technology, performing actual calculated projections based on your individual circumstances (retirement funds, pensions, social security etc) and your individual goals, and so such a rule of thumb, while helpful, may not be something on which we need to rely.

The Tactics

  • We work with you to prepare a calculated projection of how your retirement plans will play out to determine if there’s a need for a more secure investment with growth potential for the part of your retirement funds that you’ll need in the next 10 years or so.
  • We carefully consider the suitability of any approach we recommend. For example:
    1. We don’t want to suggest that you sacrifice the opportunity for growth for investments for which there may be a higher risk tolerance.
  • 2. We want to make sure that we do not limit access for funds to which you may need immediate access within a year.

There is no fee for our computer based calculated projection.

If we can be of assistance with any of these issues, please contact us.

 

 

Request A Free Consultation
(913) 440-9637


Service Area

The Wade Agency proudly services Kansas and Missouri, including: Belton, Bonner Springs, Bucyrus, Clearview City, Cleveland, De Soto, Edgerton, Edwardsville, Eudora, Gardner, Grandview, Hillsdale, Kansas City, Leawood, Lenexa, Linwood, Louisburg, Mission, New Century, Olathe, Overland Park, Peculiar, Prairie Village, Raymore, Shawnee, Shawnee Mission, Spring Hill, & Stilwell, KS.

Helping Olathe & Kansas City navigate the insurance and retirement world.