Retirement planners are more popular now than ever before. In today’s uncertain economy, folks want to know that they will have adequate resources to see them through their Golden Years.
Competent professional expertise is essential. The following illustrations illustrate how imperative proper retirement planning is for long-term economic security.
A Study in Contrasts
John Compliant and Joe Stubborn are both corporate executives earning identical annual salaries. Joe goes it alone and systematically socks huge sums into “safe” CDs and low-yielding bonds. Upon retirement, Joe goes to claim his long-awaited nest egg — only to find his goose thoroughly cooked. His money is worth less than it was during all those decades of duly authorizing direct payroll deposits. Joe remained stubbornly ignorant of two factors that hold major sway in any long-term investing strategy: Inflation and taxes. With an average annual inflation rate of 3 percent in the US, his 2 to 2.5 percent CDs just could not keep up. Not to mention the greedy paw of Uncle Sam’s that greets him every year. Look for him behind the counter at your corner convenience store. He will be the toothless old man sweeping floors.
Conversely, John Compliant seeks sage advice from a series of retained retirement planners. He sinks sizeable pay chunks into tax-free high-yielding mutual funds, stocks, and real estate. Average annual gains approach 30 percent — ten times the US inflation rate. When John puts out to pasture decades later, Uncle Sam can’t come within a million miles of his dough. Unlike Joe Stubborn, John will be a rare sight indeed around the neighborhood. He will be too busy taking around-the-world cruises, Aspen skiing trips, and cross-country tours of the US in his $150,000 RV.
Fascinating Facts About Finding and Retaining Retirement Planners
What may have once been very viable investment vehicles are now obsolete. Moreover, achieving long-term financial goals such as securing a secure retirement is not a one-size-fits-all proposition. What works for Uncle Jimmy or your neighbor Bob may be highly hazardous to your own financial health.
These type of planners are paid in one of two ways: Fee-only and commission-based. Fee-only structures entail a fixed hourly charge. Planners working on a commission basis receive a percentage of the funds that clients invest in various financial vehicles. You should consider only those retirement planners who work on the former arrangement. Fee-only formats have much less conflict-of-interest risks.
Certifiedretirementplanner.com/find.php features a searchable database of CRP-designated retirement planners across the nation. If you find any retirement planner’s close to you, an internet search engine query for “retirement planners” should do the trick. Referrals from relatives, family, or coworkers are also okay. Just be sure to solicit names — not investing advice — from such informal sources.
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