Do you know what the #1 fear of retirees is?
Running out of money.
But with proper planning in place, you can put all of your retirement fears to rest.
Grant Lannin is what’s known as a “safe money” advisor. Meaning he only deals with products that can’t lose money or go backwards in the market—guaranteeing that you have at least a base level of income to live off of and plan around if worse comes to worst.
“Too many people unfortunately go into retirement carrying enormous amounts of risk without even knowing it,” Grant said. “They are completely unaware that if we go through another 2008 where the market drops their retirement accounts by 48%—not only are they kissing their principal goodbye, but also their retirement income”.
Grant understands that not everyone is fortunate enough to have a pension that guarantees them a certain amount of money every month. But he wants everyone to know that with proper planning, they are actually able to create their own “private pensions” that guarantee them a stream of income for the rest of their life—no matter what happens in the market.
When asked what the best strategy is to prepare for retirement, Grant responded by saying he gets this question all the time and it’s impossible to answer without knowing someone’s unique situation.
“That is like asking what you should do to heal your undiagnosed wound before you’ve even been to the doctor,” he says. “Every client I have has a completely unique plan that is created to solve specific problems that they themselves face—and the only way these problems are uncovered is by going through a simple financial health analysis. That thing reads to me like a chart reads to your doctor.”
What’s also interesting is that when asked what one of the most pressing problems retirees face that they’re not even aware of is, Grant responded with this:
“Probably sequence of returns risk. Meaning, when you don’t have any income coming in, you are compounding solely off of the principal you have, which can be dangerous if the market goes down at the wrong time. Here’s what I mean. Let’s say you have $100,000 in the market, then it drops by 50%. How much do you have now? $50,000. Now let’s say the market goes right back up 50% the next day. How much do you have now? Many people assume the answer is ‘I’d be back at $100,00!’ That is actually incorrect. Fifty percent of $50,000 is only $25,000, right? So even if the market rebounded in full the next day, oops—you’re now compounding off a smaller amount than what you had originally. So your account is now only at $75,000 instead of $100,000. And without any new income coming in, this hurts.”
Grant continued to mention that all of these common pitfalls can usually be avoided by someone taking a proactive approach to their own retirement by going through an educational process with a professional that has the client’s best interest at heart.
“The key to avoiding major retirement disasters is through education. And more specifically, education regarding what potential problems you’re on track to hit and what potential solutions you have to avoid them. These are the types of things I am so passionate about helping my clients solve. And education is the first step.”
If you want to schedule a call with Grant, click here.
