Peace & Possibilities: Creating Peace of Mind in Retirement - Softcover

Bertrand, Brad; Wood, Rhett; Rose, Mark

Softcover

ISBN 10: 1546239677 ISBN 13: 9781546239673

Verlag: AuthorHouse, 2018

Inhaltsangabe

Financial peace of mind in retirement is not achieved by accumulating assets. Rather, it is achieved by establishing sustainable income streams that are sufficient to maintain your standard of living. The first and perhaps most crucial step in your planning process is selecting a financial professional. You should choose an advisor who is obligated to a fiduciary standard and who must do what is best for you and your family. At Retirement Solutions and Investment Strategies, our mission is to provide each client with financial peace of mind. As fiduciaries, we achieve this mission by creating and updating a comprehensive, customized retirement plan called the Lifetime Income and Growth Plan. This book will show you the importance of creating this strategic, thoughtful plan for your financial future and explain our process of working with clients.

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Über die Autorin bzw. den Autor

Rhett Wood and Mark Rose are fiduciary investment advisors with Retirement Income Strategies and Investment Strategies located in Oklahoma City, Oklahoma. They have a passion for helping others reach their retirement goals and teach numerous retirement planning seminars. Both Rhett and Mark have been featured on local television stations and co-host a weekly podcast called The One About Retirement. They both are Investment Advisor Representatives who hold their securities licenses, specializing in Social Security maximization and retirement planning.

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Peace & Possibilities

Creating Peace of Mind in Retirement

By Brad Bertrand, Rhett Wood, Mark Rose

AuthorHouse

Copyright © 2018 Brad Bertrand, Rhett Wood & Mark Rose
All rights reserved.

ISBN: 978-1-5462-3967-3

Contents

Acknowledgments, vii, 
Introduction, xv, 
Chapter 1: How Much Will You Need?, 1, 
Chapter 2: Lifetime Income & Growth Plan, 9, 
Chapter 3: Optimizing Your Social Security Benefits, 21, 
Chapter 4: Legacy Assets, 39, 
Chapter 5: Stock Market And Professionally Managed Investments, 51, 
Chapter 6: Real Estate: REITs And Institutional Access Funds, 63, 
Chapter 7: Oil And Gas Opportunities For Accredited Investors, 69, 
Chapter 8: Balancing Liquidity, Safety And Growth, 73, 
Chapter 9: Preparing For The Surviving Spouse, 81, 
Chapter 10: Planning For Long-Term Care Costs, 85, 
Chapter 11: Traditional, Roth And Stretch Iras, 93, 
Chapter 12: Why Everyone Needs An Estate Plan, 113, 
Chapter 13: Talking To Your Family About Legacy Planning, 125, 
Chapter 14: Get Started Today, 137, 
About The Authors, 141, 

CHAPTER 1

HOW MUCH WILL YOU NEED?

Luke 14:28 NIV

Suppose one of you wants to build a tower. Won't you first sit down and estimate the cost to see if you have enough money to complete it?

When potential clients come to us, we always want to get to know them before we discuss finances. If the prospective clients are a couple, we want to hear how they met, if they have children and grandchildren, what those children and grandchildren are like, what the couple dreams of doing in their days of retirement, and what possible challenges they see ahead. If the prospective client is single, we want to know about their past and what they want their future to look like. The questions we are asked from all of our prospective clients are, "Will I have enough to comfortably retire?" or "Can I maintain my present standard of living without running out of money?" We respond by outlining the first steps of our process. We need to:

• Determine what you are spending now and project what you will be spending in the future.

• Determine what sustainable income streams you already have and what sustainable income streams we can create to maintain your standard of living.

We can begin to answer those questions only when we have the information we need.

We use a standard process to figure out what you're spending now and project what you will be spending in the future. First, we determine your average monthly income and if you are adding to savings each month. If your saving's balance is consistently going up, your monthly expenses are less than your income. If your saving's balance is not increasing, you are probably spending all of your income. We use this analysis to determine the average monthly amount required to maintain your present lifestyle. For example, if your monthly take-home income is $6,000 and you spend $5,500 per month, then you are saving an average of $500 per month. We then factor in any large future purchases and new future expenses. Lastly, we must consider any present expenses you will not incur in the future. Once we have done all this we have an idea of how much you presently spend per month and can calculate approximately how much you will spend going forward.

Of course, the biggest unknown in retirement planning is longevity. While your grandparents might have planned for 15 to 20 years of retirement, you may have a much longer planning horizon. Many of today's soon-to-be retirees need to plan for 25 to 30 years of retirement. It's a good problem to have, and fear not, we can help you create a lasting plan. To determine how long we must plan for, we use life expectancy tables and then make adjustments based on your present health condition and family history.

In addition to longevity, there are three other key considerations that must be addressed when determining future expenses. They are inflation, taxes and long-term care costs.

Inflation. Inflation is essentially a decrease in the purchasing power of money. What a gallon of milk costs today might cost double or triple twenty years in the future, depending on the rate of inflation. A peace of mind retirement plan takes into account the effect of inflation so that you don't have to worry about the future cost of that gallon of milk or anything else.

One possible inflation scenario goes something like this: You're planning for retirement back in 1990, in that year you work with your Registered Investment Advisor and determine that your current expenses are $3,500 per month. When you retire in 2018, you will actually need $6,772 to buy the same amount of goods or services as you did in 1990. As you catch your breath, you also spend a few moments being grateful that you consulted someone who considers inflation and plans for it as well.

It is irresponsible to create a retirement plan that doesn't account for inflation — our plans factor in inflation.

Taxes. During working years, taxable income generally increases, therefore taxes generally increase. In retirement, taxable income often levels off or decreases, causing taxes to remain steady or decline. We take a conservative approach and assume taxes will gradually increase unless there is a compelling reason to assume otherwise.

Long-term care costs. A study by Medicare reveals that at least 70 percent of people 65 and older will need long-term care services and support at some time during their lives. If you haven't planned for those costs, they can be the undoing of even the most robust retirement plan. In Oklahoma during 2018, the annual cost for a semi-private nursing home room was $55,265. The annual cost for homemaker services, such as grocery shopping, errands, cleaning and cooking, was $47,133.

It's easy to see how, without a plan, long-term care costs could quickly drain a lifetime of savings. Fortunately, there are options that allow you to plan for the costs of long-term care without siphoning off the money you need to maintain your lifestyle. These options are used in the plans we design for our clients and are more fully discussed in Chapter Ten.

In retirement, many retirees have to choose which bills to pay or which prescriptions to fill because they don't have enough income to pay for all of their necessary expenses. That is not a "peace of mind" retirement. It is critical that we accurately project the average amount you will spend each month for the rest of your life so we know how much income you will need in the future.

CHAPTER 1 RECAP

• Because spending patterns are set well before you retire, and are generally maintained throughout your lifetime, your current expenses can be used to project future expenses. Your spending levels can be adjusted, but realistic retirement plans begin with projected future expenses moderately above what you presently spend and increase over time.

• Chances are you will have a much longer life than your grandparents or even parents. Unless there are extenuating circumstances, it is crucial you plan for at least 25 to 30 years of retirement income.

• Be sure to take into account the powerful issues of inflation, taxes and long-term care costs when planning for how much income you need to retire. These costs can dramatically affect your savings and comfort in retirement. Many plans underestimate or fail altogether to recognize these costs.

CHAPTER 2

LIFETIME INCOME & GROWTH...

Details zur Ausgabe

• Verlag: AuthorHouse
• Erscheinungsdatum: 2018
• Sprache: Englisch
• ISBN 10: 1546239677
• ISBN 13: 9781546239673
• Einband: Taschenbuch
• Anzahl der Seiten: 172
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: GPSR Kontakt; gpsr@libri.de; ; Europaallee 1; Bad Hersfeld; 36244; Deutschland