UlTImATE SUccESS GUIdEperson. However, there are certain components of a financial strategy
that must be in place for individuals as they transition into retirement in
order to live through their years in retirement without having to depend
on others or the government.
Some of the greatest worries retired individuals have expressed to me is,
“I’m very concerned that I will outlive my money,” and “I don’t want to
be a burden to my family.” In helping my clients quell these concerns,
I guide them through the four basic foundational legs that must be in
place in their retirement years to help them live financially worry-free.
FoUR BAsIC FoUnDAtIonAl legs to
A WoRRY-FRee RetIReMentFirst, you must have a specific amount of cash immediately available
to you as an emergency fund in case a specific need arises. The exact
amount will vary greatly depending on your acquired lifestyle and your
particular comfort level. These assets could be held in a savings ac-
count, money market, fixed income portfolio or whole life insurance
cash value.
Second, you will need to determine what your minimum income re-
quirements will be, so you can make the transition into the next phase
of your life, retirement. You will need to carve out a portion of your re-
tirement assets in order to secure a guaranteed, lifetime, passive income
stream* that you could never outlive.
This is the transition that most investors entering retirement fail to make.
We’ve been working and saving to build our financial assets in antici-
pation of this day primarily through government sponsored retirement
accounts and investing in the stock market. However, making the transi-
tion from saver and investor to retirement income is vitally important
in order to secure an income stream – so that no matter what happens in
the stock or real estate markets, your lifestyle won’t be affected by the
changes in your portfolio values.
Securing your retirement income for life is best accomplished using in-
sured products. These funds must be in a secure income vehicle such
as a fixed annuity or in some cases, a fixed income managed account.
To avoid market risk as well as longevity risk, the safety of this in-
vestment vehicle is extremely important because it will be one of your