Stop treating your Retirement Plan like a hobby. Run it like a Business!


1) Live on less. The traditional 4-5% of account balance that many retirees expect to receive as annual retirement income is no longer realistic. This was reevaluated after the financial crisis of 2008-2009. A more realistic number is 3.5%.


2) Manage Risk. Shifting the risk of running out of money during retirement to an insurance carrier by utilizing annuities that provide Guaranteed Income for Life makes all the “cents” in the world! These products get such a bad wrap but are designed for one thing and that is guaranteed retirement income. So use them! All of us need a portion of our retirement income guaranteed. Note: I do not consider Social Security Benefits to be guaranteed income as I anticipate this program will undergo changes. Any pension you may be eligible for would indeed be considered guaranteed income.


3) Eliminate Market Risk. Market Risk is a very real threat to retirees. Current levels indicate that a correction is due. When and how deep it will cut is unknown. Taking your gains off the table and utilizing Index Annuities and/or Index Universal Life options gives your portfolio upside potential with ZERO downside risk. I am NOT referring to Index Mutual Funds or Index ETFs. Both of these options come with market risk as they are designed to “mirror” the performance of the index they track (i.e.; S&P500). With Index Annuities and Index Universal Life, your money is NEVER invested in the stock market. Thus, market losses can no longer wreak havoc on your retirement assets.


4) Cut Expenses/Fees. Some of the most expensive products available to pre-retirees and retirees today are 401(k)s, Variable Annuities and Managed Accounts. These options are plagued with layers of fees, many of which the consumer eye is not trained to see. You must understand, fees and expenses come out of your account whether the account performs or not. Doesn’t really seem fair does it? You make a purchase at Best Buy, take it home only to discover it doesn’t do what it claims to do, you return it to the store for a full refund. Not the case for your retirement account. When your investment earns 2% for the year and your fees total 3.5%, your portfolio DROPS 1.5% in a year where the underlying investments made money. There are plenty of good options for retirees today that charge less than 1% annually, considerably less.


5) Consolidate. Pre-Retirees and Retirees have several needs including higher medical costs possibly even long term care needs. You can purchase a long-term care policy, a cancer policy, final expense policy and a multitude of other policies to cover end-of-life needs OR there are products available today that cover all of these needs and more. Consolidating your needs into one product can save you a considerable amount of money.


Order your copy of What Suze Orman Isn’t Telling You here


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