Friday, June 5, 2009

A New Way of Retirement Thinking Part 1

Well, it is not too new it just makes more sense finally. Everyone has seen the turmoil in the financial markets; America has not been able to save to live within its means, and remains spending taxpayer’s dollars at random to bail out ailing corporations. As an economist I believe in there is no free lunch. Someone has to pay for something. The TARF and stimulus money will have to come due someday. It is like mortgaging a house; it has to be paid off. The taxpayers will have to do that, at what cost? Social Security will be in trouble if it is not readjusted. The Fed secretary recommended a constriction on spending. The sad part is that we have to take it as bad medicine, and it usually tastes very bad. Will it cure us? Probably not. It is all assumptions; even the Monte Carlo model of calculating probabilities which are very accurate had failed. Yes that means the modeling for your retirement models have failed and will fail. This will be witnessed for years to come. A solution would be to do your own retirement. The problem is that many do of the public do not know how; here is where we come in. We had helped many successful clients who did not feel the market drop last year; they are sleeping well and happy to have maintained assets and use leverage for their retirement income. We plan for retirement which ultimately is translated into income streams for retirees. Lately we hear that, you have to stay at work for 3-7 years longer; not a nice thing to say to a client. Stay the course; this one always makes me tense up, because the market cycles have change. It may not be enough time to regain what it has been lost, especially at the later years before retirement. Still we have solutions to re-engineered portfolios, for those willing to listen. The good news is that if you have at least 10 years before a proposed retirement date, we can help. Imagine a strategy that you do not have to pay taxes when you draw your money, imagine a strategy that gives you triple interest rate of return. Some may be thinking now, what is that? Well simply, interest gain on the market, interest on the interest and the interest you do not have to pay on taxes. Wow that is sweet. Knowledge is power as long as you know how to use it. We can help. For more information on solutions contact us at 429-5193 or email me at It is for real.

1 comment:

Ellen said...

Looks like you have a crystal ball. Can't wait for part 2