RSM Financial Risk Management, LLC

Description

The most important ingredient in being able to have an enjoyable retirement is having ample income. Income planning is a more realistic term and therefore should be the primary focus for retirees and pre-retirees. A generation or two ago saving and having ample resource for retirement was less critical primarily because our life expectancy. According to the Center for Decease Control (www.cdc.gov) the life expectancy in 1900 was 47, today the life expectancy of Americans is 78 years old. With advancements in medicine and careers that are physically less debilitating, it's not uncommon to live 30+ years while retired. RSM helps clients by creating a plan focused on generating reliable, predictable, lifetime income. Ample cash flow that is tax efficient and cannot be outlived is the key to a successful retirement. Here are some of the most common mistakes people make in retirement planning: 1. Not knowing how much income their savings, investments and social security will produce. $400,000 is a lot of money, but NOT when you are trying to maintain a $75,000 a year lifestyle without a paycheck. 2. Continuing to use investments designed for accumulation rather than generating income. Stocks and mutual funds provide the opportunity for exceptional growth as reflected in equity returns in 2003. The same market place can also produce exceptional losses as felt my many investors in 2008, according to data found at Morningstar.com. Far too many Americans nearing or in retirement found this out the hard way. Investment vehicles do exist that provide equity exposure and growth opportunities without putting future income in jeopardy. A surfboard provides great fun and excitement for catching waves in Hawaii but not for crossing the Atlantic Ocean. 3. Not seeking out the help of a professional "Income Planning" advisor. Within 10 years of retirement the game changes, the rules change, and investors need to adapt their investment strategy and investments to meet these changes. You can have the best baseball equipment and coach in the game but when the game switches from baseball to cricket, regardless of the similarities, you're going to have a tough time winning let alone staying in the game.

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