Jun
19
Question: Im a 57 year old clinical physician thinking about slowing down in the next few years. I dont feel I have enough money to retire but maybe I do? How do you analyze a clients finances to make this determination? Any thoughts you could provide would be greatly appreciated. Lia, MA
Answer: In essence Lia, you want to know when enough is enough. Its a tough question to answer because everyones enough is different. As an advisor, I like to perform what I refer to as a S.W.O.T. analysis for my pre-retired clients. The acronym S.W.O.T. stands for Strengths, Weaknesses, Opportunities and Threats. Heres an example.
STRENGTHS
1. No debt except mortgage
2. Drive and willingness to continue working
3. All portfolio expenses under 1%
4. Pension with cost of living adjustment
Jun
16
***What’s The Best Way To Invest For Retirement?
June 16, 2009 | Leave a Comment
If you talk with 10 different advisors, theyll all have their own opinion as to what the best way to invest for retirement is. Some prefer actively managed investments. Some prefer passively managed investments. Some like to trade daily while other advisors like me prefer a combination of actively and passively managed investments. The point is, you need to do some homework and figure out what strategy resonates with you.
Since neither active management nor passive management has superior performance in all market environments or asset classes (large cap, small cap, international, fixed income, etc.), I think its smart to incorporate both strategies into your investing plan. Therefore, Im a staunch advocate for using low-cost index funds, enhanced index funds and exchange traded fund (ETFs) in my broadly diversified private client portfolios.
Jun
9
***All Retirement Annuities Have Fees
June 9, 2009 | Leave a Comment
Question: I'm looking for more details about retirement annuities. Do they all have fees? My sister says that hers cost her nothing and they “gave” her $5,000 for putting in about $50,000. Do they do that? I keep hearing about large fees and hidden costs, but she said that she started with $110,000 and they haven't taken anything so far in the past 18 months. Has she been taken? Louise, AL
Answer: Yup Louise, she has been taken. All annuities have expenses. The individuals that sell them rarely disclose them. She bought a bonus annuity which gave her a 10% upfront bonus (5k) on her 50k. Believe me, there are plenty of penalties and fees.
She should ask the rep a few questions:
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