It seems as though
over the last couple of months there are three factors that have had
control over the market fluctuations. Three factors outside of your
control that can have you gravely concerned about your future nest
egg in a matter of seconds. First, the concerns over the Russia –
Ukraine crisis. How many times has the market gained and receded
based on a one or two line quote from Putin? Second, the ongoing
crisis in the Middle east, particularly issues in Israel and Iraq.
As much as we hate the reality of it, this crisis has been going on
for centuries, it is not going to change any time soon. Lastly, the
falsified security of the federal stimulus. It is almost an
automatic reaction, stocks take a hit and Wall Street looks to the
Federal Government for more monetary assistance (Quantitative
Easement III). Remember, the more we spend now the more we pay in
taxes moving forward. How many of these concerns are in your
control?
Obviously none of
the mentioned concerns are in your control. Yet the future of your
nest egg is dependent on what happens on a daily basis in the market.
It does not have to be that way. You can take control of your own
destiny regardless of external events. Assuming there is an American
Flag flying over our country moving forward, guarantees are possible
in retirement. It is quite simple. Don't focus on a dollar amount
you are trying to reach (example: “I need $1 million to retire”),
instead focus on a cost of the lifestyle you want to pursue in
retirement. Ask yourself how much monthly income will you need in
retirement for life, regardless of how long you may live. Everyone
is living month to month. Those monthly expenses do not go away in
retirement, instead they hopefully go down. Nonetheless, there will
be monthly bills throughout each of our lifetimes. This is my
recommendation of focus.
Think of it this
way... Which scenario do you think hurt an investor more with their
nest egg in 2006, prior to the financial crisis? The investor who's
nest egg was dependent on day to day activities in the market, or the
investor who knows they will get the same result regardless of the
outcome? Now ask yourself the same question in today's volatile
financial arena. This is the #1 reason why many future retirees, and
retirees alike, are looking for protected income results independent
of external market events. With hindsight being 20/20, how many of
those investors would go back and trade the daily risks of retirement
for a guaranteed result? If your goals can be met without risk, why
would you roll the dice? Granted, you may miss out on a huge market
rally; however, you would bypass the huge market falls as well. I
believe this comes down to how much stress you are willing to endure
in your lifetime.
To reiterate,
turmoil in the market will always be there. This is a constant
phenomenon. You will rarely, if ever, have control of these events;
hoping the current will take you to shore. Unfortunately, there are
many still at sea who thought they would hit land long ago. This is
a risk you do not have to take on. There are viable solutions that
will guarantee your results of lifetime income, regardless of what
the market may throw your way. It is imperative to explore these
solutions that have been available now for decades. I believe the
only way to eliminate the stresses approaching or within retirement
is to remove yourself from the situation. On a closing note, make
sure to explore these options with a trusted licensed professional
who thoroughly understands the ins and outs of lifetime income
solutions.
