Complete Advisors

In the first post of this three part series, we looked at data that paints a certain picture.

A picture of us moving from a world where its citizens relied heavily on Government entitlements and corporate pension schemes to a world where we will need to become fiscally self-reliant.

In the next post we reviewed the importance of creating a written plan: contemplating your core values and quantifying your current and future goals and objectives.

In this final post we will look at two more disciplines that may help guide you in figuring out how to pay for a longer life.

1) Ignore most of the financial “advice” that comes from mainstream media outlets

Traditional media sources for financial ideas – newspapers, magazines, television et cetera, share the common goal of maximizing the number of readers/listeners they reach to grow advertising revenue and remain profitable.

And that’s fine.

The issue, unfortunately, is that the types of stories that appeal to the widest variety of readers/listeners are those that exploit either greed or fear. A story that will get your blood pumping with excitement – or scare the wits out of you .

Examples:

Greed based:

Fear based:

Responding emotionally to these messages may lead you to make poor investment decisions.

In fact, these stories can prompt investors to do exactly the opposite of what they should be doing. Notice the chart next to the greed based message which reflect how the markets behaved following the timing of this hurtful cover story.

While you may occasionally find some useful information within traditional media outlets, are they your primary source of financial advice?

2) Consider working with a (human) Financial Advisor

People who succeed in any endeavor, rarely do so alone. They are guided by their Advisors. They work with qualified professionals in their respective fields of expertise: tax and law, for example.

An alert investor will recognize that financial & investment planning is an area that requires the assistance of a competent advisor as well.

You may want to consider working with an RIA who has a legal, fiduciary duty to place your interests ahead of theirs.

Who are your Advisors?

This ain’t your parents retirement

On New Years Day 1900 life expectancy from birth in the U.S. was 47 – by New Years Day 2000 life expectancy was 77.

Life expectancy from birth in the U.S.

That’s 30 extra years of life! (by the way, it took the previous 5000 years for life expectancy to increase that much)

So we have been gifted 30 “bonus years” that no one could have envisioned or predicted!

Yet to fully take advantage of these extra years, we need to prepare financially – because it would be a shame if we were always worried about money.

And Big Brother (the corporation) and Uncle Sam (the U.S. Gov’t) may not be able to deliver – not even close.

So by quantifying your objectives, creating your plan (in writing, preferably with an advisor) and mostly ignoring mainstream media advice – you can take control of this matter.

And by doing so, you will feel confident that you are prepared to pay for – and make the most of – your longer life.

Any questions or thoughts about paying for a longer life?

 Just click here!

In the first post of this series, we looked at data that indicates it may not be a smart idea for you to rely on Big Brother (the corporation) or Uncle Sam (the U.S. Gov’t) for your long term financial security.

Longer life expectancies combined with decreasing corporate benefits and Gov’t entitlements mean that you now must take personal responsibility for your financial future.

And the first step in that direction is to create your financial plan.

If you will have any reasonable chance of achieving long term and multi-generational financial security, a comprehensive plan needs to be in place. And the cornerstone of your plan will be your goals and objectives:

How much income (after tax) do you currently need to maintain your style of life?

How much is enough?

As Juliet Schor, ahead of her time, observed in The Overspent American (Why we want what we don’t need), there is a growing movement towards less; earning less, spending less, working less – but each situation is different. How much is adequate, how much is really necessary, for you?

How many dollars (after tax) will you need for your future goals and objectives, such as college funding for your children/grandchildren or a stream of retirement income that will provide you with dignity and independance later on in life (adjusted for inflation)?

Is there an institution that you care deeply about (ie. Church, Synagogue, University, Hospital, et cetera) that you would like to impact financially during your life time – or beyond?

Is it important for you to have a financial impact on some of the major social problems of our time – such as global poverty, infant mortality, lack of clean water, homelessness, substandard education, climate change, et cetera?

Once you have looked into the mirror, established your financial goals, objectives and values (preferably in writing) you can find the right balance between living for today and planning for tomorrow. Then you are well on your way towards creating long term financial security: for yourself, your family and possibly greater causes.

Without relying on anything or anyone else.

In the next and final post of the series, we will cover the final two critical strategies towards paying for a longer life.

Any questions or thoughts about paying for a longer life? Just click here

Today, there are about 37 million Americans over the age of 65.

By 2030 that age group will expand to about 71 million (source: US Census Bureau)

That’s a 92% increase!

Yet the total number of people paying payroll taxes between now and 2030 will only increase by about 10% (source: Age Wave).

What does that data mean to you?

Can it mean that you shouldn’t rely too heavily on Government Entitlements (social security, medicare, et cetera) for your long term financial security?

Let’s hop into a time machine

And head back to the year 1985 - when Reagan was still in office and the best films were Back to the Future and The Color Purple. Pretend that you and I are entering the workforce that year and pleased to learn that out of the 100 largest companies in the U.S., 89% offer their employees a gauranteed pension in retirement!

Fast forward to 2002…only 50%

Now Fast forward to the present…only 16%

What do these figures mean to you?

Might they indicate that you shouldn’t rely too heavily on a corporate pension scheme for your retirement security?

Please understand: it is critical that you creat you own pension plan because you may live even longer than you can imagine – with little or no assistance from Big Brother (the corporation) or Uncle Same (the U.S. Govt.)

It’s now time for you to take your financial future back into you own hands because we are entering the era of financial self reliance.

And in the next two posts I will show you just how to do that.

Any questions about paying for a longer life?

Just click here!