A financial adviser outlines key concepts and issues to consider regarding retirement planning.
In the first chapter of his book, financial adviser Overson gives the following warning: “[T]he economy will be affected in a major way” as aging boomers continue to retire, yet “most people spend more time planning their vacations than they spend planning their retirement.” To remedy this situation, Overson recommends bringing careful analysis to what he calls RIFT, or “the Risk you take, the Income you choose to take from it, the Fees you are paying and the Taxes you owe on the gains….Everything else about money is beyond your control and, therefore, not worth your worry and heartache.” Overson suggests categorizing money into colors—“green” (safe money with guarantees), “red” (such as assets that fluctuate in the stock market), or “yellow,” in “which the risk is reduced because it is being professionally managed with a strategy.” Drawing on case studies to support his points, Overson recommends looking into annuities to fill projected income gaps and using life insurance policies and Roth IRAs as part of the increasing need to focus on tax-advantaged investing since tax rates, given the federal deficit, will likely rise in the future. He also cautions against too much liquidity and unintentionally disinheriting your family with inadequate estate planning. Overson really offers evergreen rather than particularly “new” rules for his stated “new age” of retirement. Additionally, his repeated mentions of hiring a professional to avoid “emotional investing” may be a valid perspective but also comes off as a bit self-serving. Overall, however, he has produced an easy-to-read guide full of solid, well-supported advice, complete with relatable scenarios and helpful chapter recaps. The result is a primer that should provide food for thought as well as serve as Overson’s intended wake-up call to unfocused investors.
Useful overviews to kick-start a more focused plan for retirement.