This is the first of a series of retirement planning articles based on the concept of Planning with Certainty. Two of the more troubling issues for individuals, whether related to retirement or not, are lack of control, and uncertainty as to the future. Too much planning today accepts that as normal, and asks those near retirement, and current retirees, to just “live with it.”
When you plan with certainty, it doesn’t have to be that way. More
The one thing nearly every professional financial advisor will agree upon, no matter what their specific approach, is that it’s very difficult to time the stock market. Money managers who are celebrated as stars one year — because they spotted something the rest of us didn’t see – may be bums the next.
The same truth applies to the more mundane world of interest rates. Though interest rates don’t tend to soar and crash with the drama of the stock market, the only sure way to detect trends is with a rearview mirror.
So when a 65-year-old woman visited Go2Income to calculate how much money her savings could provide, she remained hesitant. She knew how much income a QLAC she was considering would pay at age 85, but she wondered if she could get more income by delaying her investment in the hopes that interest rates would rise and insurance companies would offer better QLAC rates. More
Many experts tell you to base decisions on your “gut” reaction, and often that is a good and accurate way to make up your mind, such as when you meet a politician face-to-face for the first time or your daughter brings home a new boyfriend.
But when you are making decisions about your financial future, it’s usually better to rely on reason and fact, such as numbers that you can calculate. After you have looked at the analysis and the potential results, you can make a decision that fits your life and personal preferences. More