ThE NINE GOldEN RUlES OF RETIREmENT PlANNINGnot being able to live fully independently into your ripe old
age. This means a strong possible need for long term care. This
could mean help at home with an aide coming in occasionally,
assisted living facility, or a nursing home.Please don’t be a Goofus here by doing nothing, or going into
denial about it just happening to “the other guy.” You need a
plan. If you won’t do it for yourself, then do it for your spouse,
your children, and others you love. Don’t be a burden and self-
ishly dependent simply because you didn’t want to face the
truth and probability of it occurring.Having a plan doesn’t necessarily mean buying insurance –
though that is certainly a good place to consider if you can af-
ford it. It may be as simple as investing your extra savings in a
guaranteed growth strategy, and reducing your market risk, so
you will definitely have more dollars in the future.- Don’t Do FInAnCIAl PlAnnIng In A vACUUM, oR YoU
JUst MIght Be eAtIng DUst
Ok. So you like a particular investment. Love the anticipated
glorious returns! But have you considered the tax consequenc-
es of the particular investment? What about the liquidity? Will
this investment go through probate if you die? What is your
exit strategy out of this investment? So many considerations,
it makes your head spin. However, a good well-rounded and
experienced advisor earns their keep here.
Of the many things you look for in an advisor, this may be one of the
key things you want. Look for advisors who have knowledge in many
areas. Look for experienced advisors.
For example, while recommending a mutual fund to a client, I am con-
sidering the following:
- What is the potential market risk of this fund and does it match
well with my client’s risk tolerance? - Is this fund consistent with their investing objectives? Are we
investing for growth, income, or both? - Is it in an IRA? If it is, we don’t care about how much capital
gains are kicked off on a 1099 each year since we don’t have