Itâ€™s Time to Start Planning
DECEMBER 13, 2016
The time to start planning for next year is right now, because next year will be here before you know it. Part of the process for planning for next year should include your financial plans, especially if you’ve been putting them off. Whether you are just starting your career, you’re midcareer, or you’re close to your retirement, your financial plan is a living document. You should write it down, and, at the very least, review it on an annual basis.
One of the most common mistakes most physicians make is having too much money at risk in the stock market. A general rule of thumb is the rule of 100. It states that individuals should hold a percentage of their assets in stocks equal to 100 minus their age. So, a typical 60-year-old, would have 40% of their portfolio invested in the stock market. Some advisors are now saying the rule of 100 should be revised to 110 or even 120. This is foolhardy and is advice that comes from advisors who simply want to profit from you putting more money in the market. Yes, the stock market is going up to all-time highs. But, just remember whatever goes up must come down. Pay attention to the rule of 100, and if you’re nearing retirement you need to start moving some of your money into what’s known as safe money vehicles such as indexed annuities. Indexed annuities will give you a reasonable rate of return as the market goes up, and when the market goes down (and it will) you won’t lose money.
I can't stress enough how important this is.
For many, it will be the difference between being able to retire when you want and being forced to work well beyond your retirement age. It’s one thing to continue working because you want to; it’s a completely different story to work because you can’t afford to retire.
Want some help and advice? Send an email to David@theAlemianfile.com and ask to schedule a complimentary conference call to talk about how to protect your assets from the next market crash.
Visit my website www.CapitalCrestFinancialGroup.com. Absolutely make sure you come back here next week for another edition of The Alemian file.