Quote:
Originally Posted by FredJacobs
2. Clients are always warned - Your retirement comes first - it has the highest priority. We caution young families to put money away for their retirement before they consider their children's college AND do not withdraw from your IRA for current college payments. People are living longer. Under recent Mortality Tables, a 65 year old man can expect to live to age 81. However - an 81 year old man can expect to live to age 90. You should accumulate enough cash to be combined with social security, pensions, 401ks and annuities to last for 25 years.
|
I don't agree with this advice for a couple of reasons, but this is a thread highjack. First, this strategy is a hedge against lifestyle in the future, which is uncertain and has a government income stream when you get there.
The biggest event risk during your employment years, which is extremely hard to hedge, is continued employment, from which the retirement savings is derived.
Therefore, the number 1 investments should be around maintaining your employability to get past HR filters, and the ability to relocate where the jobs are, as companies move all the time now, primarily for employee and tax cost reductions. That is very difficult to hedge, both my boss and i were unemployed for three years, which wiped out alot of savings and retirement savings, and as you get older its harder to get jobs to maintain your current standard of living.
So IRAs are secondary to supporting the income stream which supports the IRA. . . again, goes to the income maximization strategy during employment years, not the retirement years, which requires income to be reinvested back into yourself and your family. The future is uncertain, and more so in the employment world of today.
I have other opinions on this from certain biases, as I have seen this advice from other finance professionals which was not fiduciarily correct.
but just another a$$hole's opinion on TOTV
sportsguy