Returns Risk in Retirement
By William Jed Mayfield
Retirement Income Specialist
Mayfield Financial & Estate Protection Services, Inc.
The Best Practices Used to Create Sustainable Streams of Retirement Income
In theory, the buy and hold approach is the surest way to make your retirement dreams come true. The market goes up over time—always has, always will—but, of course, it’s not really that simple, because what happens in between kills your income machine. If you get a bad sequence of returns risk and are losing money just before retiring, just after retirement, or during retirement in a serious way, you’re in a lot of trouble. If you are pulling money from the assets that you need to get you through to the end of your rainbow and we go upside down in the market and you haven’t planned for that, there is a big problem there.
It’s a whole different ballgame than when you’re putting money into the portfolio and you have time to withstand the ups and the downs, and then hope when you get ready to retire that you’re going to make it just right. There is a lot of “what if?” in that. You need to come see us so that we can show you a case design that cannot fail with that part of your money needed for the good, the bad, and the best times of your retirement.
There’s got to be a foundation there. There needs to be a foundation for income planning to help you get it right the first time so you don’t need to worry about all those ups and downs. You see, it’s not about timing the market, because you never can do it—nobody can. It’s about the time, and when I say that, I am asking are you 40, 50, 60 or 70? Where are you in the time of your life? Individuals that are in their forties have a good 20-25 years before their retirement to achieve their investment goals. But if you’re close to retirement or already in it, you’ve got a whole different ballgame that you are up against.
There were periods in history when returns over a twenty year period have been close to zero, or even in the negative. That’s a bad sequence of returns risk. Here at Mayfield Financial and Estate Protection Services when we talk about case design, we’re talking about something different that you probably have never seen before. This is because we take the money necessary and put it in exactly the position that it needs to be, and don’t worry about it anymore. That is truly worry-free.
But it has to be done with guarantees, not just maybes. Then the rest of the money can be placed as need be. When I talk about case design, you can go into a case design for guaranteed income with financial products that have no account fees. They have no commissions charged to your account—there’s nothing to your bottom line—no up front, no back-end loads, and no management fees. It seems hard to believe, doesn’t it? Well, they’re there. Everybody wants to say that it can’t be true, but it’s absolutely true; these financial products do a specific job for you in retirement.
So, if someone were to say to you, “Watch out, they might be trying to sell you an annuity,” I say “Watch out, because that person may not be using the proper financial product for your particular need.” You’ve got to take a look at everything. It is the same as if someone were to say, “Watch out, that firm may be trying to put too much money under management, and have you in a position to pay numerous fees and lose money at the same time.” It’s a true and correct case design that puts the plan together with absolute guarantees, and the rest of the money fits in there behind it.
We believe in doing as much as possible without being tied to ongoing fees, and we try to get to that point for each case design. As a retirement income specialist, you’ve got to start with a foundation and build from there. You’ve got to be real about what you’ve actually got and what you might not have available to make the plan work. I guarantee that we use the most dominant retirement income planning produced on the planet today, and from there you are absolutely guaranteed to be worry free with at least that part of the planning that is necessary for your essential needs.
We realize that safe money planning isn’t for everybody, but we also realize that risk isn’t for everybody. I had a gentleman come in the other day; he sat down with me and we started talking. He told me that he was there for the purpose of satisfying his wife who listens to my radio show every week and who said he should come and listen to what I had to say. But he didn’t really want safe money planning—he was in the stock market and he liked it. He was a retired stock broker and made all of his money in the market. And even if the market were to fold in half, he wouldn’t have to worry about it because he had enough money to take care of his wife and give whatever was left to his children. So, he said, please tell my wife I was here and that I talked to you, but I just don’t need safe money planning. Well, that’s ok, too. Not everybody has the same needs. But I will guarantee you this: the billionaires out there are not rolling the dice right now. So take a hard look at where you are at, and if you want to preserve some of the money that you’ve already made and keep the profits and put them to work for you, now’s the time to do it.
For further information or a free consultation, contact me:
Wm. Jed Mayfield, President
Mayfield Financial & Estate Protection Services, Inc.
Phone # 520-322-9773