According to the U.S. Census Bureau, the average lifespan for men is 82 years and three more for a woman. A Pew research survey reports that typical Baby Boomers think old age begins at 72, and more than 60% feel more energetic than their age might imply by some nine years. This is good news, and along with it, they are going to want some change in their wallets all along the way. —
While the markets have recouped the 30% drop of 2008, primarily due to government intervention, no one can predict with certainty when another decline will occur and even if the next fall will be stemmed at 30 percent in losses. Dreams of retirement with an income may have hit the floor for some baby boomers, but where there's a will, there's a way, and good financial management going forward can make it smooth sailing.
The stock market can be likened to a cork bobbing in the ocean ~ there's no way to know if it will bob north or south or catch a monster wave in a perfect storm or just cruise along with the currents, abruptly change direction or get carried in the wake of a cargo ship. The winds and waves of the stock market include global unrest, oil prices, interest rates, political maneuvers, inflation, natural disasters and many other nearly impossible-to-predict factors.
Where can the retiree who has worked hard and contributed to a 401(k) look for stability and asset protection? Certainly, compressing it, along with some home equity, a pension and some combination of assets, into a cork and tossing it in the stock market sea is a high risk way to play with life savings. But just because someone has retired doesn't mean there's no pay check. The assets can be neatly structured to produce a steady income until death, with assets being passed along to children and grandchildren.
"With the markets at all-time highs fueled by government stimulus, now is the time for retirees and pre-retirees to protect their nest eggs from the next market meltdown," says Stuart Kirsner of Stuart Estate Planning in Coconut Creek, Florida. Kirsner works side by side with his partner and son, Craig Kirsner, who holds an MBA in finance. "There are many plans and products that can and will fail, but sound financial strategies tailored to an investor's goals and objectives enjoy the success of a dependable revenue stream throughout retirement years," Craig adds.
The American Dream has lots of components, and beyond the house, two-car garage, annual vacation and dog in the yard, a comfortable retirement is one of them. More than half of working Americans save something through an IRA or 401(k), but a tiny few are well-versed in financial options to put that money to work to their advantage following the retirement party and proverbial gold watch.
The upside of retirement planning is that much of it can take place at retirement. And it's not just about investments like the wayward cork in the stock market sea, nor can one solely depend on Social Security. "More than 10,000 Baby Boomers are retiring every day, and that will put a strain on Social Security," observes Kirsner. "How that system will play out in the future is anyone's guess. What you don't know that you don't know can hurt you in the most vulnerable place ~ your life savings."
Dick Van Dyke's take on retirement is one all retirees can embrace: "It means doing what you have fun doing." One might add: And having peace of mind with a paycheck from your own savings, like back in the working days, but without the work part. Financial planning with an experienced advisor can protect the value of retirement savings while producing income. A win-win scenario.
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Release ID: 76758