Rubino & Liang Wealth Partners

Four Challenges You May Face in Retirement

As you near or enter retirement, there may be some challenges you face in the realm of financial stability. In this week’s episode of Just Don’t Lose The Money Radio, John and Ryan discuss four challenges retirees face while retiring in the 21st century. 

Listen to the audio for the full discussion, but here are some highlights from what they discussed:

Challenge 1: The Landscape Has Changed

  • Primary retirement vehicles used to be pensions and Social Security (pensions now a thing of the past)
  • 401k plans created in 1978
  • 1980 to 200, the Dow Jones Industrial Average rose over 1,000%- more than double the prior 90 years
  • Starting in 2012, roughly 10,000 baby boomers turn 65 PER DAY, and will for the next 19 years
  • What does all this mean and how could it affect you?

Challenge 2:  Falling Interest Rates

  • Interest rates are finally on the rise, but still at very low levels.  
  • 10 year US treasury yield currently around 2.5%
  • Why is it so Low?
    • Low Inflation, extreme national debt.  Explain this
  • For example: When treasuries were yielding 10%, it only took $100k to earn $10,000. Now that it is currently at around 2%, it would take $500,000 to earn that same $10,000!

Challenge 3: National Debt 

  • Our national debt is currently over $22.2 Trillion!
  • One major way for the government to start paying that off? An increase in taxes.
  • With the assumption that taxes must increase, that means in the future you are going to be in a higher tax bracket. So when you start making withdrawals from your retirement accounts, you’re going to owe more to Uncle Sam, and you are gonna get less. That means either you have to:
    • Earn more
    • Save more
    • or Protect what you have so you don’t have a correction and you LOSE more.

Challenge 4: Costly Financial Products

  • Financial services makes up a big portion of GDP, Wall Street is taking more money from everyone’s pocket instead of actually addressing the issues
  • Costly financial products aren’t actually addressing the concerns of today’s retiree’s, they are just helping wall street to make more money.

Our Process To Address These Challenges:

The 365 Retirement Plan provides specific recommendations on how to work towards your goals heading in to retirement. After the discovery and analysis stages of our process, we’ll present your unique plan and answer all of your questions. When creating our plans we strive to:

  • Provide advice tailored to your circumstances
  • Minimize & reduce future tax liabilities

Educate on strategies to help protect & distribute assets

  • Build a foundation for reliable income to meet expenses
  • Implement strategies to grow savings efficiently and hedge inflation

Minimize /reduce risk 

  • Our process helps determine how much risk you should be taking with your investments, and what your ideal asset allocation is.

With this information, we will assign you a WealthGuard number, which we sync with your investment value. 

As your portfolio rises, so does your WealthGuard number. If the market falls, approaching your WealthGuard number, both you and our office is notified, and a new investment strategy can be created.

Interested in learning more about The 365 Retirement Plan and WealthGuard? Click here to request more information!

WealthGuard™ is a complete portfolio monitoring system. Designed by determining the amount of downside risk a client is willing to tolerate, WealthGuard™ is added to client accounts to help protect from downside risk. WealthGuard™ is not a stop loss strategy. When the account value in the portfolio hits the targeted downside value, an alert is sent to the client, advisor, and money manager. The money manager trades the account as indicated on the WealthGuard™ agreement. 

There is no guarantee the exact WealthGuard™ value will be captured, or assets will be traded or liquidated the same day the WealthGuard™ value is reached due to time of day and/or market restrictions. WealthGuard™ is not responsible for any tax implications that may result due to the liquidation or trading of the holdings. FormulaFolio Investments is not responsible for any errors or omissions in the information used to prepare your WealthGuard™ percentages. 

WealthGuard™ does not make any representations or warranties, whether expressed or implied, regarding investing in securities or investment products. WealthGuard™ makes no warranties to the legality or suitability of any investment product.


Thinking about your retirement situation?

Let’s chat. Find a time on our calendar to reserve a 15 min. phone call with either Sam, John, or Ryan - we'll use this time to get to know you and your needs and talk about the retirement planning obstacles you may be facing.

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