Retirement will look different for every person. How you plan is vital to your success. Whether you use the bucket strategy or just try managing your spending habits, one of the most important tactics is staying ahead of inflation. Don’t let inflation erode your purchasing power. In order to keep that from happening, you may need to enhance your retirement paycheck with other sources of income. That’s the purpose of this fourth income for life strategy—pulling income from your investments.
As a child, I vividly remember playing Chicken with my younger brother. We would hop on our bikes driving straight for each other waiting to see who would be the first “chicken” and swerve away and ultimately lose the game. Of course, there were also times we walked into the house with bruised elbows and skinned knees because neither of us was willing to let the other outdo us. We were so hardheaded we chose to crash into each other. A recent phone conversation with a client had me reminiscing that game. They wanted to know my thoughts were on the current market—especially with the recent events. Just this past weekend we saw a madman open fire on a small Texas church. Last month’s deadly rampage in Vegas stunned the world. Additionally, just this past summer, it hurricane after hurricane pummeled the gulf. So with all the chaos dominating the news, they are concerned with how these events will affect their retirement.
We recently had a new client come in for an interview. They were interviewing our firm, as they were looking for help when it came to their portfolio. As our conversation progressed in that meeting, I noticed that investment management is not what they really needed. What they actually needed was comprehensive wealth management. If you’re wondering what that entails, let me explain a little more.