Then You Did It. Now You Don’t.

Written by Doug Dahmer  |  February 26, 2015

Despite the fact the retiring boomers are a huge group with enormous clout and wealth, no one in the investment industry talks about the fact they are headed for a big financial pothole. The trouble is that everything that baby boomers have done to build wealth will be undone if they keep doing what they have always done.

A lifetime of financial security is not a linear process. In fact everything that worked to your advantage pre-retirement, turns and works against you in your draw down years.

During your accumulation years tax planning is centered on deferring taxes to future years. The RRSP mantra is followed blindly without much consideration for the endgame. In your retirement years this approach ultimately leads to the creation of damaging tax traps.

During your accumulation years market volatility provided the opportunity to buy securities at discounted prices enhancing your returns and accelerating the build of your long term savings. Market volatility in your retirement years can be disastrous causing you to run out of money long before you expected. (See my article “The Mathematics of Catastrophe.”)

The buy and hold, long term view approach touted by the investment business is best for them, and to some extent fine if you are 20 years old, but not if you are 55. Sound investment strategies for your draw down years must follow a very different approach to the practices you relied upon during your accumulation years. Moving to an investment management approach that follows the disciplines practiced by talented pension plan managers is essential.

You have to work hard to have an easy retirement. It is a world of rapidly changing government entitlements, new and different tax strategies and complex investments vehicles. At Emeritus, I have built what I believe to be the most comprehensive suite of planning tools in the industry. With “Designing My OK”™ and the direction it provides you can add hundreds of thousands of dollars to your lifetime assets and cash flow.

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