Gary Scheer Discusses Planning for Retirement
As one of the nation’s most trusted financial advisors and the managing partner of Gary Scheer, LLC, Mr. Scheer has been providing financial guidance for more than 35 years. This website will provide an outlet for Gary Scheer to provide some general rules and tips that people of all ages can benefit from as they look forward to retirement. Gary Scheer believes that most of the elements of retirement prep come back to risk management. Of course, in order to manage risk, people need to know what the risks they’re facing are.
Gary Scheer warns that one of the top risks for those who have invested wisely over the years is facing a bear market when the time finally does come to retire. If the market plummets in the first few years of retirement, funds can dry up much quicker than expected. The good news is there are ways to combat this risk. For starters, asset allocation should change as a person gets closer to their retirement age. While it makes sense to have more funds in stocks early on in one’s career, as a person gets older, they should look to mitigate risk and invest more of their funds in cash reserves.
The next biggest risk to understand when considering how much is needed for a retirement fund is inflation. Inflation is usually calculated at about 3 percent increases per year, but this is not a strict figure. Some costs, like healthcare, are growing at a rate that far exceeds 3 percent. Inflation is a big reason why a retirement portfolio needs to be diverse. Investors need to count on the stock market to provide returns that surpass the inflation percentage each year.
A lot of people were taught throughout their lives that the retirement age was 65. However, now that 1 in 4 couples will have at least one person live to be 95, it’s never been more important to work until 70, when it’s possible. The longer a person can work, the longer they can avoid dipping into their retirement funds. Also, just a few more years of work and growing investments can equate to nearly decades in savings.
Gary Scheer believes that one of the biggest benefits of hiring a financial advisor is their ability to point out risks and offer solid advice on how to minimize the negative impact of these risks as much as possible. For instance, a financial advisor understands that there’s no blanket amount that should be pulled from a retirement fund each year once people retire. People must protect themselves by considering increases in medical bills or what it takes to maintain their lifestyles. Every investor is different, but the good news is a financial advisor, like Gary Scheer, can create a customized plan to meet the financial needs of any individual.
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The risks above are just some of the common risks Gary Scheer references with his clients. Future blog posts will tackle more common financial issues and risks. Be sure to check back often for the latest news and insights from Gary Scheer.
