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Wealth Adviser: 'Practice' to Survive on Fewer Dollars During Retirement

Wealth Adviser: 'Practice' to Survive on Fewer Dollars During Retirement
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By    |   Saturday, 10 June 2017 09:31 AM

Professional wealth adviser Adam Vega tells Newsmax TV that savvy everyday investors should heed the same advice he gives to highly paid professional athletes.

Whether you’re an NBA star or a regular middle-income worker, it’s import to pay attention to your asset allocation in your retirement planning and to “practice” living a different lifestyle once your daily income stream eventually ends, explaine Vega, of United Capital Financial Advisers,

“One of the big things we recommend oftentimes is ‘practice’ retirement,” said Vega, who empowers high-net-worth individuals by guiding them to making informed and measured financial decisions.

“Practice one day what it looks like not having that money. Plan. Let's see if you can try this different lifestyle and live off of a certain asset level, certain income level, as an example,” Vega told Sunday’s “The Income Generation Show.”

“A big thing in my opinion is adjusting those spending habits and spending curves,” he said.

“The second is the asset allocation. It's so important to have money invested in multiple different places,” Vega said.

“There's an inverse relationship with most investments. Your stock portfolio is up. Your fixed income is going down. It's so important to understand that relationship and having different pools of money invested in different places, performing differently to help provide you with more of a consistent return throughout any market,” said Vega, who specializes in the financial needs of doctors, business owners, serial entrepreneurs and aviation professionals.

Surprisingly, he says many athletes he deals with are more conservative with their investments than you would expect.

“I do think that a lot of that has to do with a lot of the concepts that we get into, especially with all these new fancy investments that are always coming about. They don't grasp how they work oftentimes. A lot of these things we're used to being exposed through qualifying plans, 401(k),” he said.

“A lot of these guys just never got the exposure. We have coming out of high school, going into college, whatever the case is, barely getting any exposures to these financial instruments. My experience is they are oftentimes very conservative,” he said.

And while a lot of these sports players they say they are conservative, “they're actually investing in all the time they're investing in things outside of the box. They're investing in a restaurant, they're investing in a clothing company. Those are some of those risky investments, but those are things they understand,” Vega said.

Vega then also suggests other options to them, such as fixed income and equity market investments.

Vega also has adapted a time-tested strategy where many financial planners and stockbrokers craft portfolios for their clients that were composed of 60 percent equities and 40 percent bonds or other fixed-income offerings.

“I stick to balanced portfolios the best that I can. Again, it's hard to give a blanket recommendation with anyone, because everyone's circumstances and situations are just so vastly different,” Vega said.

“But in my opinion, balanced portfolios. When you're looking at your traditional 60/40, whatever that 40 percent compromises of today — whether it's fixed income, alternative investments or whatever the case may be — my humble opinion is that's the best way to get exposure and learn investing," he explained.

"The Income Generation" airs on Newsmax TV every Sunday at 10 am ET.

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Professional wealth adviser Adam Vega tells Newsmax TV that everyday investors should heed the same advice he gives to highly paid professional athletes.
Wealth, Adviser, Practice, survive, Dollars, Retirement, Adam Vega
Saturday, 10 June 2017 09:31 AM
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