Ken Himmler.com

I wish I had better news about how to stay retired but the recent market scare has a lot of people making rash and emotional decisions. This usually comes from a lack of a financial plan and the lack of working with someone that has designed a (RDP) retirement distribution plan. When you are retired look at your funds as being broken into four different pie slices. Stocks, Bonds, Cash and Real Estate. Each one of these should behave differently and they should have the right amount of diversification. Usually, when someone has a scare it is because they see what is happening in the stock market. If the plan was set up correctly, they should have thier distributions coming from cash or bonds when the market drops. When the market goes up it is then time to re-balance – and replenish the cash or bond accounts. If you currently have a plan that depends on taking distributions only from stock then I do feel for you. What can you do to save your retirement portfolio?

1) Make sure that you have an adequate (RDP) retirement distribution plan.

2) Make sure that you have a plan that allows you to pay the least amount of tax possible.

3) Make sure that you have a plan to re balance the assets when they get out of tolerance to the model you use.

4) Make sure that you do not act on emotions and try to time the ups and the downs.

5) Have a process and and a system in place that calls for specific action tasks when certain things happen that may affect your stability.

6) Make sure you have your plan balanced into

Domestic Stocks Small cap, Mid Cap, Large Cap

International Stocks Emerging and developed

Real Estate, Income producing diversified between residential, commercial and industrial

Cash and cash equivalents Money Markets and Fixed Annuities (also could include equity indexed annuities)

And lastly, remember the past – there have been many other market drops and no matter how much media sensationalizes the drop remember that as long as we keep having babies we will continue to need products and services. (Historical birth rates have been directly tied to economic growth and we just had a spike as big as the baby boom in the 40s and 50s)

Tells us how you are handling the recession?

Disclosure: Any comments or posts in this blog should be considered opinions of the authors of such comments. This site nor any of its authors or commenters offer any investment, legal, insurance or tax advise. Please consult with a licensed professional for any such advise. All information contained within this site is the copyright material of the site owners and any copy, reproduction or use of any kind is prohibited by law and your honesty. Any post or comment is also the copyright material of the site owners. If you post or comment you are agreeing to transfer all rights to the site owners.

Leave a Reply

You must be logged in to post a comment.