Tags: Adviser | Detailed | Retirement | Plan

Find an Adviser Who Has Their Own Detailed Retirement Plan

By    |   Thursday, 02 Aug 2012 12:52 PM

Last week I illustrated a plan to help someone reach financial independence and got many reactions, mostly positive, but obviously there are always some skeptics.

What I find amusing is that many people who write about investing aren't financially independent themselves — and worse yet, many have either a weak strategy for reaching it or no plan at all.

Recently, I came across the following information from a Wells Fargo survey conducted in 2010 (figures throughout are medians, the midpoint of responses):

• Respondents predict they will need a nest egg of $300,000 for retirement, but have saved just $20,000 of that amount. They expect to live on retirement savings for 19 years, while planning to spend 10 percent of their nest egg every year.

• In addition, 72 percent of middle-class Americans between the ages of 25 and 69 years expect to work through their retirement years.

Editor's Note: Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

• Three in four middle-class Americans expect to work through their retirement years, including 39 percent who said they would need to work in retirement for monetary reasons.

• Roughly one in 10 Americans (8 percent) say they never plan to retire. The survey found that 40-somethings are dramatically less likely to have pensions than are older workers, and economic strains are most likely to be causing tension in their households. A total of 80 percent of them expect to work through retirement.

• The survey also found that only 33 percent have a detailed, written retirement plan.

• A similar number (37 percent) don’t know how much they’ll need and/or can’t estimate how long they’ll be able to live on what they have saved.

• Yet 58 percent are confident that they’ll be able to retire comfortably.

• Almost two-thirds (62 percent) say they did not changed their retirement savings rates in the two years after the recession began, and only 16 percent increased their savings rates.

Editor's Note: Small-Town Ohio Accountant Uses Simple Forgotten Secret to Help Investors Pocket Millions

In plain English, most people don’t have a detailed retirement plan.

What’s stopping them?

Most say they don’t know how to pick someone they trust. That is valid. It’s actually simple. Find someone who has actually has a detailed retirement plan and who has saved for retirement.

Competence and transparency are important. How do you know for sure? You need to ask the prospective financial adviser how much their annual dividend income is from their investments and also their age.

Someone 75 years old with only $15,000 of annual dividend income isn't better than someone who has $85,000 of dividend income and is 45 years old.

Dividends are the first sign of safe, high-yield value investing. Those who have built a Dividend Machine that more than pays their living expenses before age 55 have a very good idea on how to beat the stock market and, no doubt, practices value investing.

Dividends are the sure sign of someone who actually practices value investing and just doesn’t talk about it.

If you were going to choose a personal trainer, you wouldn't choose someone fat and dumpy.

When choosing a financial advisor check out how much dividend income he or she has.

John Rockefeller, the world’s first billionaire, once said, “Do you know the only thing that gives me pleasure? It's to see my dividends coming in.”

If your adviser isn’t willing to show you his or her tax return, there is probably a reason why.

About the Author: Bill Spetrino Bill Spetrino is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of the Dividend Machine. Discover more by Clicking Here Now.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
627
2012-52-02
Thursday, 02 Aug 2012 12:52 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved