Two things that should be in every retirement plan

Truly holistic retirement planning should consider these two things…

Bravo to Martha Shedden for standing up against the tide of traditional retirement planning that generally ignores the use of all assets to fund retirement! Shedder is a Registered Social Security Analyst and Chartered Retirement Planning Counselor. In a recent column in the financial blog Think Advisor Shedden asserts holistic retirement planning includes not only investment accounts but also Social Security claiming, tax strategies such as Roth IRA conversions, long-term care, and reverse mortgages.

Martha Shedden- Registered Social Security Analyst & Chartered Retirement Planning Counselor

Many financial advisors may throw the word holistic around, when in fact most are making client recommendations that ignore other assets, most notably the home and its potential to create additional cash flow.

Shedden points out traditional retirement planning focuses on asset allocations, the rate of return, and historic volatility. Considering the consequences for unwary investors the phrase, “Traditional retirement planning yields typical results”. A 2013 Morningstar study Alpha, Beta, and Now Gamma found a 22.6% increase in retirement income using five strategies. (1) total wealth including Social Security, (2) withdrawal sequences, (3) incorporation of other products, (4) employing tax-efficient strategies, and (5) liability and asset allocation optimization.  Morningstar’s study notably omitted the consideration of a reverse mortgage under the incorporation of other products.

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