Comments on: The Three Biggest Risks of Retirement http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/ personal finance tips, tricks, and commentary Mon, 13 Feb 2012 18:22:18 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: lynda bruce http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/comment-page-1/#comment-157091 lynda bruce Sun, 09 May 2010 14:37:20 +0000 http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/#comment-157091 I had an 401k I was fully vested in when I left that employer. I transfer it to an 401k with an annuity before the market dumped. It saved my bacon. My 108k went to 60 but with the annuity I earned 5% on my 108k and it still grows as longs as I leave it alone, the original money is protected. At 49 yr old I plan on doing just that. My husband is not an annuity fan but decided to guide me towards it. We are so glad. I had an 401k I was fully vested in when I left that employer. I transfer it to an 401k with an annuity before the market dumped. It saved my bacon. My 108k went to 60 but with the annuity I earned 5% on my 108k and it still grows as longs as I leave it alone, the original money is protected. At 49 yr old I plan on doing just that. My husband is not an annuity fan but decided to guide me towards it. We are so glad.

]]> By: Until Debt Do US Part http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/comment-page-1/#comment-125538 Until Debt Do US Part Thu, 02 Oct 2008 14:41:02 +0000 http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/#comment-125538 It would be funny if it weren't so sad but I could probabaly ask 10 people that I know the question - "what are the risks you face in retirement" and I would say about 1 of them would be able to say what they were. The more I read about retirement the more scared I get. I think a lot of people got caught out in the property boom as they assumed that their home and maybe a rental property or two would fund their retirement. Choosing the best investment vehicle for your retirement funds is tricky so diversifying is the only way to go. It would be funny if it weren’t so sad but I could probabaly ask 10 people that I know the question – “what are the risks you face in retirement” and I would say about 1 of them would be able to say what they were.

The more I read about retirement the more scared I get. I think a lot of people got caught out in the property boom as they assumed that their home and maybe a rental property or two would fund their retirement. Choosing the best investment vehicle for your retirement funds is tricky so diversifying is the only way to go.

]]> By: Meg http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/comment-page-1/#comment-125512 Meg Wed, 01 Oct 2008 20:47:55 +0000 http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/#comment-125512 What you say about a down market when you are in the retirement accumulation period not being a big deal may sound good in theory . . . but it still scares the c___ out of you! Thankfully we are not actually trying to live off of a retirement account yet, but my brother in law is and the last few months have not been pretty. I have decided that this is a good time to switch our 'new money' allocations in our funds to some of the stocks that have taken a big hit .. as long as they are not tied into the credit markets, there are some good values out there... What you say about a down market when you are in the retirement accumulation period not being a big deal may sound good in theory . . . but it still scares the c___ out of you! Thankfully we are not actually trying to live off of a retirement account yet, but my brother in law is and the last few months have not been pretty.
I have decided that this is a good time to switch our ‘new money’ allocations in our funds to some of the stocks that have taken a big hit .. as long as they are not tied into the credit markets, there are some good values out there…

]]> By: Lee Hall http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/comment-page-1/#comment-125488 Lee Hall Wed, 01 Oct 2008 01:01:34 +0000 http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/#comment-125488 These risks can really take a wind out of your sails when you do your best to build a retirement plan that you want to be successful. The simple truth is we don't know what the future markets will do, how long we will live or how inflation we chew at our savings. There have been many who survived the depression or the holocaust or countless other fates to eventually rise above. Life comes down to the journey, not the destination. Money is just a tool to get there. Do what you can to make it happen through smart investing. If the world or the markets change, you can always say "no regrets." These risks can really take a wind out of your sails when you do your best to build a retirement plan that you want to be successful. The simple truth is we don’t know what the future markets will do, how long we will live or how inflation we chew at our savings. There have been many who survived the depression or the holocaust or countless other fates to eventually rise above. Life comes down to the journey, not the destination. Money is just a tool to get there.

Do what you can to make it happen through smart investing. If the world or the markets change, you can always say “no regrets.”

]]> By: Heidi http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/comment-page-1/#comment-125466 Heidi Tue, 30 Sep 2008 20:45:09 +0000 http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/#comment-125466 I'm no advisor or financial planner, but I do work inthe industry. There are two additional risks that often come up over the course of my day: 1. What about health care risk? This is a huge wild card - longevity takes on a whole new perspective if you or a spouse is in poor health and need assisted-living or nursing home care for 5-10 years (or longer). I’ve known couples to get divorced in their 70’s and 80’s so as to protect estate values for the healthier spouse (not a strategy I condone or recommend). 2. Also, consider withdrawal rate risk. If you've done everything right and saved, but you withdrawal too much (or at the wrong time - enter market risk), there's a good chance you'll run out of money. As you say, annuities may be part of the answer, however, but inflation-adjustment is an annuity rider that will decrease your monthly annuity payment. Joint survivorship has the same effect. When I ran the numbers for VA vs. expected market returns for a target date fund, the market won, hands down. Pre-retirees should consult with a financial professional to create a customized solution based on their unique financial situation. I’m no advisor or financial planner, but I do work inthe industry. There are two additional risks that often come up over the course of my day:

1. What about health care risk? This is a huge wild card – longevity takes on a whole new perspective if you or a spouse is in poor health and need assisted-living or nursing home care for 5-10 years (or longer). I’ve known couples to get divorced in their 70’s and 80’s so as to protect estate values for the healthier spouse (not a strategy I condone or recommend).

2. Also, consider withdrawal rate risk. If you’ve done everything right and saved, but you withdrawal too much (or at the wrong time – enter market risk), there’s a good chance you’ll run out of money.

As you say, annuities may be part of the answer, however, but inflation-adjustment is an annuity rider that will decrease your monthly annuity payment. Joint survivorship has the same effect.

When I ran the numbers for VA vs. expected market returns for a target date fund, the market won, hands down.

Pre-retirees should consult with a financial professional to create a customized solution based on their unique financial situation.

]]> By: nickel http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/comment-page-1/#comment-125268 nickel Tue, 30 Sep 2008 14:18:57 +0000 http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/#comment-125268 Lynda: Thanks for your comment. I've added a bit more info to clarify Milevsky's point of view. I'm not saying I necessarily agree with him, but he's an academic researcher specializing in risk, not a salesman, so his view should be relatively unbiased. Lynda: Thanks for your comment. I’ve added a bit more info to clarify Milevsky’s point of view. I’m not saying I necessarily agree with him, but he’s an academic researcher specializing in risk, not a salesman, so his view should be relatively unbiased.

]]> By: Lynda Damrill http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/comment-page-1/#comment-125255 Lynda Damrill Tue, 30 Sep 2008 13:37:18 +0000 http://www.fivecentnickel.com/2008/09/30/the-three-biggest-risks-of-retirement/#comment-125255 This sounded like an annuity salesman! Careful, annuities are very expensve .The name change is because we older investers know to run when we hear the word annuity unless it is a retirement fund held by our jobs. Tnese are correct risks of retirement ;however,this is why you switch to conservative investments at retirement and pre reitrement time . Even though our government is doing whacky things on occassion including right now/ I'll bet on inflation indexed goivernment bonds(I bionds) and inflation indexed treasuries knowing they are wealth preservers ,not wealth builders. Thanks for your normally very helpful info. on this blog !! I am no expert,but I had to comment....may need to be corrected/ open mind! This sounded like an annuity salesman! Careful, annuities are very expensve .The name change is because we older investers know to run when we hear the word annuity unless it is a retirement fund held by our jobs.
Tnese are correct risks of retirement ;however,this is why you switch to conservative investments at retirement and pre reitrement time . Even though our government is doing whacky things on occassion including right now/ I’ll bet on inflation indexed goivernment bonds(I bionds) and inflation indexed treasuries knowing they are wealth preservers ,not wealth builders.
Thanks for your normally very helpful info. on this blog !!
I am no expert,but I had to comment….may need to be corrected/ open mind!

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