Close Close

Retirement Planning > Retirement Investing

3 simple tips to improve your client's retirement plans

Your article was successfully shared with the contacts you provided.

“Many baby boomers will retire in the next few years, and for many of them that dream has a nightmarish tinge—they’re worried they’ll run out of money,” says Stephen F. Lovell, a nationally recognized retirement expert. Lovell, president of Lovell Wealth Legacy, offers three simple ways to bring your dream into reality. budget1. Revise your budget at the year’s beginning.

Ask yourself: How do I spend my money? Many of us believe we have a reasonable idea of where we put our money, but unless you account for your spending, you may miss out by not putting away enough for your happy retirement.

A household’s discretionary spending on nonessential goods and services like a second smart phone case or the premier movie channel could top 30 percent. And that is often twice what you intended—but you don’t see it until you budget.

“Budgeting puts you in the driver’s seat,” Lovell says. “From there you can control where you spend. You’re buying on purpose, and sometimes you get a nice surprise. That alluring vacation is now within reach.” proactive2. Be proactive about your financial interests before visiting a professional.

Knowing which financial products may work best for your personal needs and how to protect your hard-earned money from unnecessary taxation is not what most laypeople excel at. That job is best handled by working with a professional. But, as with your health, you reap the benefits of being aware of your needs and of initiating the process of looking after yourself.

“Remember, 40 percent of retirees underestimate their life expectancy, according to an Ernst & Young study,” Lovell says, “so if you don’t want to run out of money, create your financial plan to cover this extended retirement period. Then, your odds for a comfortable retirement are improved.” invest3. Consider alternatives to stocks, bonds and cash.

Many new investment types have appeared to solve planning and retirement issues. Yet most investors limit their choices by relying exclusively on stocks, bonds and cash.

From 2000 to 2013, the stock market, for all its ups and downs, wound up at roughly the same place, around 1527. At a 2 to 3 percent investment cost per year, many investors, for all their efforts, lost money!

“I educate my clients by bringing to their attention the wide universe of investment types,” Lovell says. “Results are that more suitable solutions are uncovered and then applied for the client’s benefit.”


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.