The golden years are a period of life that most of us dream about as a time when we’ll have the opportunity to do what we want when we want. However, according to the U.S. Census Bureau, most people retire at age 62 and the average length of retirement is 18 years. That’s a long time, especially if you haven’t properly prepared for retirement. “The key word is ‘planning’,” says John Lohrenz founder of JKL Wealth Management. He says that failing to plan is what leads to financial trouble in retirement. Often times, people view making a financial plan as a tedious process; therefore they delay looking at their financial portfolio. Lohrenz advises, “Don’t make it bigger than it is.” The idea, he says, is to sit down with a financial expert and typically within 45 minutes, a financial plan with action steps can be drafted. The first step to creating a financial plan is to look at what you own and what you owe. Some people don’t have a good grasp of this. Without knowing your net worth and your debt, it’s impossible to plan for the future. Lorenz says the next step is to look at your monthly income needs and to calculate how much you’ll need to fund your lifestyle, not just now but also in the future. Then look at any receivables: social security, rental income, and pensions. Next, compare that to see if there is a surplus or shortfall each month. If there is a shortfall, make adjustments. You might need a second job and/or to cut expenses in order to save and pay down debt. Understand the challenges that you’ll face as you plan for retirement. Lohrenz says that it’s important to examine the “downside” of a financial portfolio.
“If you look at what stocks have done since 1980, (33 years ago) they’ve been down 13 times for over 15 percent in a calendar year. So, once every two-and-a-half years, they’re going to go down by about 15 percent,” says Lohrenz. He says understanding this will allow you to determine how financially comfortable you are and if you can withstand the decrease when it hits. Lohrenz says, “If not, reduce your allocation to stocks.” Working with an experienced financial planner will help ensure that you have ways to protect your wealth while minimizing your potential loss. But today the role of the financial advisor has changed. Today’s financial planners are co-planning people’s financial future, and creating wealth management strategies. “When I started in the business, there weren’t cell phones. The fax machine was a big deal,” says Lohrenz. “At that time, information was something that people didn’t have in regard to financial investments. So we were really brokers of information and people paid a high commission to do transactions based on the information that we had. That’s completely flip-flopped now. Information is everywhere and people have access to any research they want to do. They can do it at the touch of a fingertip online. So, today, we’re paid more for wisdom, objective analysis, and advice on everything that will affect their money not just transactions and stocks and bonds,” says Lohrenz. Searching for the right financial planner can be difficult. Check references, qualifications, and experience. Ask questions and spend time with the financial planner before you decide to work together. The client/financial planner relationship will be one of your most important business relationships; take the time to develop it and carefully explain your goals, expectations, and financial needs.watch The Mummy movie online now