Time is ticking on retirement. – Rick Viader

The 24-second shot clock was invented in 1954 to compel NBA teams to speed up their games. Without it, teams have no sense of urgency and could literally keep the ball for the whole game. Many pre-retirees also lack a feeling of urgency in planning for the day when they will no longer get a paycheck and will be forced to spend decades without their employer depositing a check every two weeks. That is what we call the “retirement shot clock.” It comprises everything you need to prepare to defeat any opponent you might encounter in retirement.

If there’s anything to learn from basketball, it’s that preparation is the way to success. Before every game, you should analyze opponents to give your team a competitive advantage, and this is precisely what you should be doing in retirement to prevent the risk of running out of money. Your opponents in retirement may differ from those on the basketball floor. You won’t come eye to eye with a diesel-like Shaq or have to chase Steph Curry around for 48 minutes, but you’ll face other risks.

The biggest opponents you’ll face in retirement are:

1. Taxes.

2. Market risk.

3. Inflation.

4. The cost of long-term care.

Allow us to present you with the scouting report to overcome these obstacles and get set for success.

  1. Taxes. Well, they are a sneaky opponent. The one thing I can say about this is that it never stops coming at you. In fact, we need to see whether it’s on steroids since it’s sometimes huge and sometimes small. However, I believe taxes will continue to rise in the future. So, if you have a 401(k), keep in mind that you have never previously paid taxes on your account. And after you reach the age of 72, you will be obligated by law to pay them. It’s known as the required minimum distribution (RMD). Consider a Roth conversion, which allows you to pay taxes on your retirement funds now when you know what tax bracket you’re in, rather than later when you have no idea.
  2. Market risk. Market risk is like an old-school basketball legend who has been ballin’ for years and knows how to catch you off guard when you least expect it. Just be careful because it might sweet talk you, make you feel wonderful, and get you to let down your guard, just to turn violent and bring you crashing down. One thing to remember about market risk in retirement is that you can safeguard your account against loss after you reach the age of 59 1/2. Fixed indexed annuities, for example, have no fees and allow you to share in some of the market’s potential while avoiding its downside. Also, if you are still working, you may access more investment possibilities by rolling your savings into an individual retirement account (IRA) at 59 1/2, rather than the restricted funds offered by your 401(k) plan or Thrift Savings Plan (TSP).
  3. Inflation. That’s the player you cannot trust. Basketball requires a high level of reliability, and inflation is not someone you want on your team. Inflation begins with hustling, shooting, rebounding, and doing all things possible to win the game. But every year, it puts in less and less effort for you. As the cost of living rises, you must ensure that your assets do as well. You can no longer go to a bank or credit union and acquire 5% certificates of deposit (CDs). And nowadays, being too careful is just as dangerous as being overly aggressive. You may deposit $10,000 in your bank account today, and guess what? It may still be $10,000 in ten years, but it’ll only be worth half of what it is today. That is the danger you are taking. Investing in stocks or remaining invested in stocks throughout retirement might help you keep up with the rising cost of living. Of course, there’s no guarantee, but equities in a well-diversified portfolio have performed well over time.
  4. The cost of long-term care. In retirement, there is a nearly 70% chance that you’ll require some form of long-term care. Injuries are an essential part of the basketball game, and there’s a strong possibility you won’t feel as good in retirement as you do now. As a result, it’s critical to consider long-term care while you are well to aid with any severe health difficulties in the future. Many individuals have abandoned traditional long-term care insurance because if you have one and do not utilize it, you lose the majority of the money you paid into it. A living benefits rider is a common option for pre-retirees. These are policies that you can use before you die. If you have a life insurance policy with living benefits, you will be covered if you ever develop a terminal, chronic, or acute disease.

Preparation is essential for success in basketball. You’ll confront hostile conditions from the opposing team and referees who never blow their whistles, but you only have power over what you can control. You will be set up for financial success in retirement if you recognize dangers and understand your opponents early on while working with a financial advisor who can create a game plan for your retirement.

Contact Information:
Email: [email protected]
Phone: 9568933225

Other rick viader Articles

Time is ticking on retirement. - Rick Viader

How To Change Your FEHB Enrollment After Retirement - Rick Viader

Ten Tips That Will Help You Make Great Investment Decisions, by Rick Viader

Battling Inflation In Retirement, by Rick Viader

Leave a Reply