One of the biggest fears people 55 and over have today is running out of money. At Walter J. Reyna, Inc. want to prevent this fear from becoming a reality. We understand that a change in strategies and planning may be in place, and we are prepared to help. Your investment needs are different during the distribution years due to factors known-and unknown.
1. What factors do we know will affect retirement funding?We know that we need to plan for longer retirements. With healthcare advancements and healthier lifestyles, we’re now living longer than past generations-and retirement could potentially last 25 or 30 years, or even longer.
We know we need to prepare for a retirement that will cost more. Seniors are now spending a greater proportion of their money on housing and medical care. These are two of the highest inflation categories!
2. What factors in retirement funding are impossible to know?
We don’t know how much longer traditional pension plans will exist. There’s been a huge shift from employer-provided pension plans that paid retirees a steady stream of income (a defined benefit) to defined contribution plans. This change shifts the responsibility for ensuring lifetime income to the individual.
We don’t know the long-term solvency of Social Security. The ratio of covered workers to Social Security beneficiaries has changed significantly, with fewer workers per recipient.
3. So how do we reduce the uncertainty?
We need to be certain a lifetime income is there to replace what might be lost due to a decline in traditional pensions and the uncertainty of social security. We also need to couple this with the peace of mind that you will never run out of a check, but also have a chance to get raises over time to try and keep up with inflation.
Walter J. Reyna, Inc. has addressed these issues by utilizing the tools we have at hand to develop strategies that can provide a predictable lifetime income without the client ever giving up control of the money.