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Wealth Professional | 02 Sep 2015, 08:15 AM Agree 0
Advisors are pointing to a fatal flaw in deciding to ditch all they’ve been taught about calculating postretirement needs
  • Kathy Waite Your Net Worth Manager | 02 Sep 2015, 03:23 PM Agree 0
    I use Naviplan and it defaults to 90 , select Monte Carlo simulation and it tries different ages as well. I usually try to leave the house out of the plan so that if they overspend or have long term care needs we have that. I am seeing people assume they can downsize and bank a lot of cash but in our area condos cost as much as houses and have the condo fees as well. The current 55 plus all assume extendacare is covered by the government and the kids will inherit the house. It may be mostly now , just pensions taken into account but in Europe they sell your home , farm and take savings so the 40 years olds shouldn't assume that won't happen here as the number of people over 55 grows and we spend longer, less quick deaths, in these homes.
  • Lynda Weinrib | 06 Sep 2015, 11:23 AM Agree 0
    My father helped me to invest at age 15 - yes, almost 60 years ago. I have experienced the highs, the lows, and the level markets.

    I believe that most people will live for about 30 years after retirement. Given that assumption, a retiree should invest for the "long term", as should a 40 year old.

    That being the case, why do we err on the side of caution when we know that the money invested in that manner will not grow as fast as inflation plus taxes plus withdrawals?

    I did not - and still do not. And it has proven to be the right way for me. I still invest enough in conservative equities to sleep nights and enough in highly volatile equities to make my money grow more than inflation, taxes and withdrawals over the long term.

    I choose my money managers very carefully, and watch them very carefully to ensure that they do not switch their investment styles. I am very aware that my expertise is definitely not choosing stocks or bonds!
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