Simplified Approach to Investing for
Long Term Wealth
America faces a complex challange: securing incomes that last a lifetime for a rapidly growing population of retirees. With life spans rising, the U.S. Census Bureau projects that America's over-65 population is on track to double by 2040-to more than 80 million people.
Over the past generation, America has become a society of investors. Both retirement and employee medical benefits programs are placing more and more reliance on individual savings and wealth management. This shift to individuals is occurring at a particularly challenging time for managing investments. The bear markets from 2000-2002 and 2007 and 2009 resulted in the worst 10-year stock market performance ever- even including the great depression. The impact to the psychology of retirees and pre-retirees is likely to be long-lasting.
Retirees must make changes in financial thinking as they transition from full-time work and wealth accumulation to retirement and possible weath drawdown. We help our clients avoid the five key risks that retirees face in planning for lifetime income: longevity risk, inflation risk, poor asset allocation, too rapid withdrawal, and rising health care costs. We explain the need to consider investment probabilities in retirement planning, rather than relying on historical average returns. And we discuss specific trade-offs and possible solutions to help achieve a secure retirement.