The Word On Wealth

Tip of the Week - October 26, 2020

October 26, 2020 Season 1 Episode 1
The Word On Wealth
Tip of the Week - October 26, 2020
Chapters
The Word On Wealth
Tip of the Week - October 26, 2020
Oct 26, 2020 Season 1 Episode 1

Welcome to The Word on Wealth's Tip of the Week! Every week we email the Tip of the Week and more directly to our subscribers with our Weekly Economic Update. You can sign up directly to receive a copy here:  https://grandcanyonplanning.com/resource-center/signup

This week's tip:
Your retirement may last 20 years or longer.
So, while you might want to invest more conservatively with age, you may not want to abandon equity investments that give you the potential to grow your savings at a rate faster than inflation. 

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The Word on Wealth Show is brought you by Grand Canyon Planning Associates. For more than 25 years, the professionals at Grand Canyon Planning Associates have provided comprehensive retirement, tax, and estate planning services to families throughout Arizona.

We offer complimentary and obligation-free meetings to find out more about your needs and to see if our services are right for you. Whether you are just starting out, well into your working years, getting ready to retire, or already retired, we can help you protect and preserve the legacy you’ve worked a lifetime to build.


--
Securities and Advisory Services Offered Through Client One Securities, LLC, a Member of FINRA/SIPC, and an Investment Advisor. Grand Canyon Planning Associates, LLC and Client One Securities, LLC are not affiliated.
--
Hep Cats by Kevin MacLeod
Link: https://incompetech.filmmusic.io/song/3867-hep-cats
License: http://creativecommons.org/licenses/by/4.0/

Show Notes Transcript

Welcome to The Word on Wealth's Tip of the Week! Every week we email the Tip of the Week and more directly to our subscribers with our Weekly Economic Update. You can sign up directly to receive a copy here:  https://grandcanyonplanning.com/resource-center/signup

This week's tip:
Your retirement may last 20 years or longer.
So, while you might want to invest more conservatively with age, you may not want to abandon equity investments that give you the potential to grow your savings at a rate faster than inflation. 

--
The Word on Wealth Show is brought you by Grand Canyon Planning Associates. For more than 25 years, the professionals at Grand Canyon Planning Associates have provided comprehensive retirement, tax, and estate planning services to families throughout Arizona.

We offer complimentary and obligation-free meetings to find out more about your needs and to see if our services are right for you. Whether you are just starting out, well into your working years, getting ready to retire, or already retired, we can help you protect and preserve the legacy you’ve worked a lifetime to build.


--
Securities and Advisory Services Offered Through Client One Securities, LLC, a Member of FINRA/SIPC, and an Investment Advisor. Grand Canyon Planning Associates, LLC and Client One Securities, LLC are not affiliated.
--
Hep Cats by Kevin MacLeod
Link: https://incompetech.filmmusic.io/song/3867-hep-cats
License: http://creativecommons.org/licenses/by/4.0/

Hi, I'm John Dombroski, and this is The Word on Wealth Tip of the Week.

This week's tip is, "Your retirement may last 20 years or longer. So while you might want to invest more conservatively with age, you may not want to abandon equity investments that give you the potential to grow your savings at a rate faster than inflation."

Currently, we have a double-edged sword. We have very low inflation rates at approximately 1.4%. According to the US Labor Department, this was published on October 13th of 2020 - that's less than half of what the average historic rate has been, so that's good. That means the cost of our goods and services is going up at a much lower percentage each year. However, the negative here we're finding is that if you have money in bank accounts such as CDs or money markets or high-interest savings accounts or even some annuities, you're earning much lower rates than what the actual cost of inflation is today.

So now we have to try to balance how to increase our rate of return on our investments in retirement so that we can outpace inflation. So, as an independent investment advisor, my job is to understand each individual's needs. Everyone is different. We can't use the same approach with everyone.

Now one of the things we have to look at first, of course, is what are the sources of income that you will have that will be consistent. Everyone would normally have Social Security as an example. Well, Social Security has an inflation component to it. It's a cost of living adjustment. You may have heard of a COLA (cost of living adjustment) which occurs each year for your Social Security. And we also know that Social Security is a life-long type of income. So it's almost your own little personal pension that you have. There are also other individuals out there who are fortunate to have an actual pension from a company they worked for. In that instance, that too could have a cost of living adjustment attached to it, but in most cases, it doesn't. Then we have those out there who may not have a pension.

So now, we need to understand the nature of the assets that you've saved throughout your life so that we can help compartmentalize those assets to generate the necessary income needs that you'll have throughout your retirement lifetime. And this is the balance we have to take between risk and reward. That's why I say you may want to be more conservative in retirement, but we still have to look at options to outpace the rate of inflation. It could be done, but it needs a good plan.

I encourage you to visit our website at grandcanyonplanning.com and learn more about our services and listen to full episodes of the Word on Wealth. You can also call us to schedule your complimentary retirement assessment. Let's take a look at what you're doing to plan for your financial future. Call us at 480-991-1055. 

I'm John Dombroski reminding you, don't run out of money before you run out of time.