Monday, March 26, 2012

The Flaw in Relying on "Potential" When It Comes to Your Retirement Planning

The Flaw in Relying on "Potential" When It Comes to Your Retirement Planning

While “potential” is a great thing and for that matter should be encouraged in many aspects of our lives, the one area where it doesn’t carry much weight is in planning for retirement.

Because the clock simply keeps ticking, we don’t have much of a choice – we MUST retire one day, sooner or later. If that’s true, don’t you find it baffling (as I do) that nine out of 10 folks have retirement financial plans that hinge entirely on potential? Things like, the potential that…
·         The stock market will do really well and not plummet just before, or during, their retirements. Or even if it does dip, that it will recover so that they can catch up and have the comfortable lifestyles they dream of.

·         Tax rates will be lower during their retirements so they will get to keep more of their yet-to-be-taxed savings.
Of course, you have the freedom to prepare for retirement as you wish. But judging by what people tell me and the emails I receive from folks all across America, most simply went with their so-called financial advisors’ recommendations, although these recommendations were based entirely on potential outcomes. These folks are now stuck, having learned this unfortunate lesson the hard way.
It is okay to challenge your advisor, because as it turns out, many advisors don’t follow everyday commonsense in their work. Think about it: The definition of potential, when used as a noun is “Latent qualities or abilities that may be developed and lead to future success or usefulness.” The keyword here being may, which also means may not. But our retirements are not potential, because our biological clocks have no mercy!
So what happens if the stock market doesn’t do well? Or if taxes sky rocket? You still have to retire. Do you want to stake everything on a possibility, or would you rather make a guaranteed plan that will benefit you, regardless of market conditions or tax rates?

Contact a financial professional at Laser Financial Group TODAY to schedule your complimentary consultation. Learn about strategies and plans that won't leave your retirement success up to potential market gains or advantageous tax rates. or 877.656.9111.

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