Like many others, this summer and fall I watched Hurricane Harvey, Irma and Maria rolled in damage from tropical America and elsewhere and causing widespread.
I live in Kansas, the great state of killer tornado suddenly out of nowhere almost no warning. Tracking hurricanes so far in advance, and with some ability to accurately predict its direction and strength, is fascinating to me.
Almost as amazing, I admit, is the idea that people can have a few days, or even weeks, to prepare for a devastating storm, but sometimes choose to do nothing. They do not have boarded windows. They do not leave town. They just think they can “take it.” Some people even hold a hurricane watch party.
Then I realized that doing nothing – it is by grinding her self-confidence, caused by ignorance or because they lack the help they need – is not all from what I see every day when I retire with pre different people.
These people who have had years to prepare, but many people have done very little to prepare – or their plan is untenable and doomed to failure. Some actually sit in our office and told me that they intend to live from their savings, withdraw 5% or 6% a year – because of this record bull market they become so complacent, they want their savings and will continue to have It could grow. They either do not understand the danger or their combination will not admit – they refused to listen to financial experts who see signs that trouble may be the future, including:
- Clock is ticking on TODAY bull market. of 8.5 years, which is not the longest bull. The title went to one, from autumn 1990 to spring 2000, the average bull market RAN for about 4.5 years … … we know that the good times can not last forever.
- Price-earnings ratio is at historically high levels. As of mid-November, Shearer price earnings ratio for the S & P 500 index sat 31.52, Bichler PE, its long-term average of 16.80 (since 1871) is significantly higher. In these past 146 years, we’ve seen a P-E higher than this only three times: 1929, 2000Years and today.
- Bonds show signs of extreme values. 10-year note yield is about 2.4% to correct mid-November. This is not without precedent: in a 146-year history with the above replacement portioning, we have experienced a 16-fold interest rates this low. However, we have never been so low at the same time have such a high stock valuations and interest rates. In the other extreme of the time, they have balanced each other out.
No one said it was panic time, but, of course, in order to protect your portfolio from damage is the best time before the storm roll, here are some ways you can prepare :
- Consider taking some of your income from this bull market off the table, and look for alternatives that can provide predictable income. For example, you may wish to purchase a fixed index annuities provide a guaranteed income stream, you can not live long. Or you can choose to deposit or money market accounts and FDIC-insured certificate. You may not get as much, but your principal will be protected.
- Look to move to the portfolio management , rather than a random collection of stocks and bonds. Professional money managers paid to research and select investment options that best fits your individual needs; they closely monitor these assets, and to use their experience and knowledge to decide when to sell.
- If you have not already, consider hiring a CERTIFIED FINANCIAL PLANNER ™ professional who is a trustee and will always be to find out your best interests. He or she can help you tailor, finance houses, can better withstand any upcoming storm. Be sure to ask, which includes a written comprehensive plan to ensure that the basis of income indestructible; acquiring assets that will provide solid walls IDE revenue, cash flow and inflation protection of the picture, you’ll want to stick with it, to help you grow your money, but you can If you can afford to lose is particularly rough storm asset consists of a solid roof.
For nearly 10,000 baby boomers retire are currently in the United States every day. This is required before the next big market correction, consolidate fiscal house quite dense landscape.
If you want to survive no matter what after retirement, it may be time to do some better weather financial opportunities.