Home Equity in Retirement Planning
Today, around 30% of homes in the US are owned free and clear; 17 million of that 30% are people over age 60. In this post-era of the housing crash, home ownership has decreased to 63% from 69%. However, that news is not necessarily bad! We have greatly rebounded in real estate values and are on a more sustainable home ownership trajectory. The American Dream is alive and well!
Continue readingThe Current Retiree Dilemma
If we plot these 2 risks on a matrix then we would say there are 4 potential outcomes: 1) High market returns with high longevity (awesome), 2) High market returns with low longevity (bummer), 3) Low market returns with low longevity (rats) and lastly, 4) Low market returns with high longevity (uh oh).
Continue readingManaging Risk in an Increasingly Volatile and Expensive Marketplace
With high equity and fixed income valuations and low corporate earnings expectations combined with rising interest rate forecasts; relying on financial markets to deliver historical average returns increases the risk that clients will not be able to achieve their financial goals.
Continue readingBefore You Buy that Annuity…
With all of the attention given to financial markets, it’s no surprise that one would want to escape the noise and settle for a “guaranteed withdrawal” or a “minimum return”.
Continue readingRetirement Income and the Maginot Line
As you transition from saving for retirement to taking retirement income most people recognize they need to modify their balance sheet (see Winchester Mystery House) and their investment strategy. Today’s retiree faces a more challenging task of meeting longer time horizons, increasing health care costs, and less predictable retirement income. With a blitzkrieg of new challenges, addressing risk through a tolerance questionnaire and by simply adjusting your equity weighting accordingly could become your Maginot Line.
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