The most important financial goal in retirement
In our opinion, the most important goal in retirement is to preserve one's purchasing power to stay ahead of constantly rising prices for goods and services. In our experience, it’s not about preservation of principal, it’s about preserving your purchasing power over your retirement.
You could be looking at a 30-year retirement where the cost of goods and services will absolutely double, quite possibly triple with an outside chance to quadruple. Double that if you're married or have a life partner. Investing in the great companies of the U.S. and the world should help toward achieving that goal, with their historical growth and rising dividends.
There are only two possible outcomes: Your money will outlive you (which is good) or you will outlive your money (which is bad). Retirement is an income problem. We believe that the risk is not in temporary market declines but in the loss of purchasing power.
If you’ve never heard anything like this before, you’re certainly not alone. The demographics of longevity have changed and so too have the models and strategies. If you’d like to take a short walk into the world of retirement income planning in the 21st century, contact us today to learn more.