Wednesday, February 20, 2013

7 Deadly Sins!

WILL I HAVE ENOUGH MONEY??
 
That's definitely the number one concern of anyone facing retirement.      We all like to think that we have adequately planned for our retirement, but for most Boomers, it's frightening to think that I might outlive my money.  A new book, "The 7 Deadly Retirement Sins" by Ryan Zacharczyk, CFP offers some excellent tips to ensure your money doesn't expire before you do.    The first part of the book is a fictional account of a compilation of many retirees who have faced several of the same issues we all do in retirement.   It's just to give you a little insight into what others are facing.
 
The 7 Sins according to Mr. Zacharczyk are:
1.  Retiring too early or living above your means.
2.  Improper Investment Asset Allocation.
3.  Collecting Social Security at the wrong time
4.  Working with the Wrong Advisor or No Advisor
5.  Paying too much in Fees and Expenses
6.  Trying to Time the Market
7.  Lack of Health Insurance
 
Overall, I felt he made some excellent points regarding retirement planning and the only one I disagree with is # 3.   He advocates holding off as long as possible to take Social Security (SS).  I disagree as in most cases it will take a person 7 to 8 years to recoup what they could have gained in taking SS as soon as possible.   My thoughts on taking it early are:
 
1.  You may not live until full retirement age.
2.  SS may no longer be available.
3.  The present value of money.
 
Obviously, if SS is going to be your only retirement income, you may want to postpone it as long as possible.
 
BOTTOM LINE:   You can never over plan for your financial security in retirement; so, why not take a few hours and read his book.   It's an easy read with some very insightful tips.
 
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1 comment:

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