Even Kreskin Doesn’t Know

May 4, 2020 | Blog, Financial Planning | 0 comments

Has a financial planner ever asked you how much you’ll need in terms of income in retirement?  I admit even I have been guilty of this classic “traditional financial planning” question.  

But the truth is, we have no idea what the future holds.

 Here is what we don’t know:

  • We don’t know how long we will be in retirement.   10 years, 20 years, 30 years … or longer
  • We don’t know the return our investments will earn.   8%, 2%, -5%.  A big loss in our early years could devastate us.
  • We don’t know what our expenses will be.   Taxes, health care, housing, utilities, cost of goods, inflation.
  • We don’t know $#@!     (Much. the word is much.)

Because the future is truly unknown, those in retirement often find themselves “penny pinching” because they are constantly worried about outliving their money.     We reduce the money we take from our RSPs or investments to preserve capital.  We hold a great deal of our equity in our home and feel uncomfortable using this as a source of retirement income.   As inflation continues throughout retirement, our income buys less and less resulting in a reduced lifestyle.

There is a solution to the problem.  The retirement financial dilemma can be avoided when you own permanent cash value insurance in your retirement years.      

This type of life insurance enhances retirement income by providing cash that you can use to augment income as well as giving you the permission slip to spend down other assets eg) taking a reverse mortgage on your home knowing the death benefit will pay off the debt when you die.

When you own permanent insurance, you can literally transform the way you live in your retirement years.  It allows you to spend and enjoy your assets more readily during your lifetime in addition to leaving a death benefit when you are gone.

I build plans routed in achieving economic based maximums.  I regularly am able to create an additional million dollars of retirement income.   A better plan does not require more savings, its just requires a better strategy.

You can’t predict the future. 

Instead of trying to figure out what you’ll need (how Traditional Financial Planning works) you should instead work on a plan that delivers maximums (Economic Based Planning)

Think of all the things, the norms, the expenses that you have now that your parents could not even have envisioned they would have.

Things we have to pay for now … we never would have even imagined 30 years ago!

  • Technology
  • Computers
  • Printers
  • Scanners
  • Netflix
  • Cell phones
  • Chargers
  • Cords
  • Earbuds
  • iPod
  • iPad
  • iTunes
  • Port sticks
  • Satellite TV
  • Internet
  • Wi-Fi extenders
  • Apple Music
  • Automobile Related
  • Seatbelts
  • Power steering
  • Power windows
  • Air conditioning
  • GPS
  • Navigation
  • OnStar
  • Child car seats
  • Fees
  • 407 charges
  • Appliance maintenance packages
  • Costco membership
  • Doctor fees
  • Chiropractic care
  • Eye care
  • Airline baggage fees
  • Airport improvement taxes
  • Child Related
  • Designer children’s birthday parties
  • Rep sports
  • High end Halloween costumes
  • Tutors
  • School lunch programs
  • After school car
  • Extravagant school trips
  • Cord blood storage fees
  • Fur Kids
  • Doggy Daycare
  • Dog walker
  • Cat and Dog licences
  • Home Related
  • Air conditioning
  • Home alarm systems
  • Microwave oven
  • Garage door opener
  • Dryers
  • Granite counter tops
  • Icemaker and water from fridge systems
  • Cleaning lady
  • Personal Care
  • Chiropractor fees
  • Man scaping
  • Pedicures
  • Manicures
  • Facials
  • Waxing
  • Laser hair removal
  • Cord blood storage fees
  • Teeth whitening

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