How is Retirement Planning Different?
Retirement planning is the process of evaluating one’s financial, health, and interests so that a comprehensive plan can be established to create a realistic and predictable retirement. Most financial advisors create financial projections that are based on historical returns that may not have any predictive value for the future in any way what-so-ever. People’s money is “stuffed” into an investment and the client’s hope that their advisor has the correct “insight” to place them into the right vehicle and that the market is ready to go up at that time and not down. Nothing is predictable, it is all based on hope. That hope is based on past performance. Performance that was created in a economic environment of growth not decline.
As I mentioned earlier, proper Retirement planning uses products that have minimum guaranteed predictable growth combined with a market linked element so that extraudinary growth is also possible. All gains that are made are maintained and are never put at risk. Based on guaranteed growth percentages, often as high as 8%, we can provide income values years in advance that are worst case guarantees. We then build a retirement plan around those values, and plan for travel plans, lifestyle purchases etc, so that one’s retirement is enjoyed and not just endured. Unfortunately, this type of planning is all too uncommon in the investment industry.
