The Many Benefits of Wealth Management

Article by George Townsend

--A conservative approach is best: Too many retirees still found themselves relying on high risk markets when the Great Recession hit because they didn't amass enough wealth during their working lives to cover their retirements. If you start planning for retirement young, and commit yourself to putting a modest portion of your income into a conservative fund (like a Roth IRA) every time you get paid, you'll be just fine. For example, if you put just 100 dollars a month into an IRA you will have earned over one and a half million dollars by the time you retire after 40 years.--Get wealth management help you can trust: Once you have built up a comfortable nest egg in your emergency and savings accounts, you can start thinking about real investing. Getting help from a good financial planner can help you reach your retirement goals faster and more securely: after all, he is the expert!Starting young and being wise in your choice of wealth management professionals can help you live your life today without worrying as much about what will happen tomorrow. Don't wait!With more Americans approaching this phase of life, the issue of how to manage money within retirement is increasingly becoming a priority.Consider these statistics:The largest growing population segment in our country is people 100 years or older.Within the next decade, most of the boomers will reach traditional retirement age. About 25% of the U.S. population--one in four people--will be retired.Many of us will spend more years in retirement than we did working.Yet when you search on the internet for retirement help, you'll find page after page almost exclusively focused on making money and building wealth for retirement rather than managing wealth in retirement. No one seems to be educating retirees about managing their income and developing the right distribution strategies. Estate planning is well covered--probably because it's a "goal" to provide money to heirs. But helping retirees to manage the money they have today, while they are still in retirement, is conspicuously absent in most financial education efforts.From our experience in educating our clients for retirement, there are seven key areas where retirees need both financial education and financial planning in order to protect and preserve wealth:Money management. Managing your monthly expenses to ensure they are not forced to take large distributions from their retirement nest eggs to meet current obligations.Cleaning up the nest. Out of site, out of mind is far too often the mantra for retirees. However, a failure to organize can be disastrous later on. Pull together all those retirement accounts: IRA's (yes, some folks do forget about older IRA's they have), old 401k's from previous employers, annuities etc. review and consolidates. Roll-over that 401k to your IRA, which is almost always in your best interest. Make sure the right information, such as beneficiaries are on the accounts and they are set up directly. Once you or your spouse dies, it's too late.Distribution planning. Planning distributions to ensure that you are not taking too much or too little from their retirement accounts, minimizing tax liability, and meeting Required Minimum Distribution amounts.Managing your money and continuing to accumulate assets.

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Ervin Gibson is near what
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