Press Room

 

Retirement Game Plan
 

Media Contact
Dan R. Strain, Ph.D.
Managing Member
Paradigm Financial Group, LLC
Ph: 800.323.2101
Email: danstrain@knology.net

 

COLUMBUS, Georgia, June 20, 2011 - Retiring early or in need a personalized engineered strategy to avoid outliving your income?

When you retire, your portfolio takes on a new and entirely different role. Your portfolio is no longer the means to accumulate money. It is now a source of income.  This is a major change. The investment formulas, to which investors have become accustomed alter dramatically. Once investors turn the retirement corner, they will need expert advice on how to handle the new dispensation.

It is important to invest in a disciplined way by diversifying your assets and avoiding the attempt to 'time the market'. When you retire, however, it becomes more important to decide how to withdraw from savings and to do so in a way that ensures you don't out live your assets.

Traditional methods such as  mean- variance optimization are replaced with issues such as balancing cash flow and bequest demands.

Financial advisors will prepare for these changing demands. Rising employment income, during our working years, generally provides a hedge against inflation. But the retiree looks to the investment portfolio to bear much of the burden of compensating for inflation risk. In retirement, therefore inflation-hedging strategies become very critical.

For example it might be feasible for a retiree to supplement social security and any pension income with, 5 percent a year drawn from an investment portfolio. However, in order to compensate for estimated inflation of 3%t a year the portfolio might have to advance 8% a year.

For some investors, an investment aimed at achieving this goal carries too many risks. As a result, the investor might want to take less market risk and accept that the portfolio will eventually be depleted.

In facing these issues of de-accumulation, personal strategies must be implemented and monitored. You must have a financial game plan. Call us now at 800.323.2101 for information on how to handle your financial game plan.

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Near Retirement Age, but No Retirement Plan?


Media Contact
Scotty Scott
scotty3100@knology.net


COLUMBUS, Georgia, May 24, 2011 - It is vital to work with a professional financial advisor who can evaluate all the pieces of your financial life to help develop a comprehensive financial plan for a "realistically achievable retirement" - especially if a gap exists between the retirement you envision and the funds currently available. Baby Boomer need to start NOW.

  • Continue to maximize savings by taking full advantage of employer-sponsored retirement plans and individual retirement accounts.
  • Diversify your investments and strongly consider your personal risk tolerance.
  • The power of long-term compounding is enormous. Start as soon as possible.

" Timing the Market" does not work; "Time in the Market" does work. Having multiple options is always the best choice. By deferring consumption today to invest in the future, our family has more options and life choices down the road. Is that not what retirement is all about?

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