Retirement Guys: Things ain’t like they used to beWritten by Nolan Baker Mark Clair | | firstname.lastname@example.org
The word “nostalgia” often brings many images of the past that were great moments in time. For me, it was driving around in my ’56 Chevy enjoying the warm summer air and cruising around the streets of Bryan. The beauty of “cruising” sure did stand out as a fond memory like many other images from my past.
Mark often remembers the times that his grandmother would walk with him to the corner store and they would share a piece of Chuckles candy together. Sitting together on the front step of the candy store discussing which Chuckles was better, the red or the black? Thanks to this fond memory, Chuckles is the official candy of The Retirement Guys and we always have a box on hand.
Yet, investors should beware of this emotional euphoria, which can cause some people to make poor investment decisions right about now.
We recently interviewed Suze Orman about the American Dream of yesteryear and what the reality of that dream is today. She covers this and many other timely topics in her book, “The Money Class.”
Mark often says, things “ain’t like they used to be,” and boy, he sure hits the nail on the head! For generations, the dream of an enjoyable retirement meant working for a company for a lifetime, counting on a pension, Social Security and a little savings for retirement.
As Orman points out, “The truth is, you must learn to trust yourself. To follow a path that is right for you, to make choices that are realistic for you and your family. Becoming that person requires education, a course of study.”
Here at the Retirement Guys Resource Center, we couldn’t agree more. Our mission is to educate all Americans on how to be financially self-reliant. Today, after a major decline in traditional defined pension plans, most Americans are left in charge of saving and investing for their own retirement dreams. That responsibility along with a lost decade in the stock market, has now birthed the No. 1 fear among seniors, retirees, and baby boomers: running out of money. They realize that this threat is staring them straight in the face. Getting educated financially will give a retirees the power to eliminate their fear and replace it with a platform of “security and hope” as Orman so smartly points out.
We shouldn’t count on our government to take care of us in the future. With current national debt levels now topping $14 trillion and future liabilities for interest expense, Medicare, Social Security and Medicaid costs topping $112 trillion by some estimates, our country faces serious financial problems now and in the future. Although these problems seem to be out of control, the consequences could be much higher taxes in the future. What is the solution? Start doing some smart planning now resulting in better control of individual tax situations.
As bad as these debt levels and unfunded liabilities seem, this is a crucial point in time when Americans are, more than ever, in control of their own financial destiny. Instead of relying on the government or a company for a peaceful retirement, you can have more control of your own outcome. In Orman’s new book, “The Money Class,” she tells us to “stand in our truth.”
It is important to rebalance your portfolio before the next meltdown occurs. Forget the benchmark. Instead, set your own thermostat. Standing in your truth means knowing what’s real right now and having a good understanding of your future needs.
Once there is an honest discussion about what your needs are, not about what the “Jones” are doing down the street, then and only then can you create a plan that is based upon what’s essential to your family.
Once a family knows this, they can work to set up a plan — adjust the thermostat, if you will — to make them comfortable and ignore what’s happening down the street at the “Jones’.”
For many investors, looking at their finances from this perspective will be a way, perhaps for the first time, to reach the ultimate financial confidence.
For more information about The Retirement Guys, tune in every Saturday at 1 p.m. on WSPD 1370 AM or visit www.retirementguysradio.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., Member FINRA / SIPC. NEXT Financial Group Inc. nor its representatives provide tax advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee. The phone number is (419) 842-0550.