6 Of The Most Costly Mistakes & Risks for Texas Retirees

#1 Social Security Blunders

Too many people take social security at the wrong time

Too many people take social security too early

Some take it early because of need, others because of fear that social security income will disappear due to funding problems

Very few people have actually seen the financial numbes relevant to their own situation to see how much money they may be potentially costing themselves by taking social security at the wrong time

A wise investor should consider having a report run that shows their current strategy vs an optimal strategy. The software and reports from LifeYield (one software that we use) helped retirees identify optimal strategies with $140,000 in potential additional lifetime income per household in 2020 on average. (source)

#2 Drawdown Risk

Many people are unfamiliar with the term drawdown

It's pretty simple: basically it's how long it takes to recover losses in a portfolio

Unfortunatlely, many people don't appreciate the term until their portfolio has drawn down to that "I want to throw up" level

Understanding drawdown can you help better understand the potential risk so that you can assess if the risk you are potentially taking is in line with your ability to emotionally or financially withstand such drawdown

Are you 100% comfortable with your drawdown risk?

#3 Emotional Risk

Read this article by Kiplinger entitled "The Psychology Behind Your Worst Investment Decisions"

Emotions are one of the leading factors of risks and mistakes in retirement

Stop letting your emotions drive your investment decisions. Instead, consider working with a financial professional who can help reduce the Emotional Risks associated with investing

#4 House Transfer Risks

Many people believe that owning real estate in Texas with their spouse as tenants in common will automatically transfer their real estate to their sposue at death

But they're typically wrong becuase special language in the deed (or a special type of deed) is typically necessary in order to trasnfer your real estate to your spouse without the need for probating such asset

As a result, many people find themselves in probate court, and probate court costs money for attorneys and filing fees

Additionally, an asset in probate typically means that it's subject to Medicaid Recovery if Medicaid advanced funds for your nusring home

We encourage you to speak with an estate planning attorney to assess your particular situation

#5 Closed-Minded Risk

Some people refuse to have a conversation about creating a guaranteed lifetime income stream, such as might be available on some fixed index annuities

Some are closed-minded to such discussion beceause of pre-conceived notions

This type of income stream may, or may not, be attractive and beneficial in your particular situation

But how would you know unless you actually had an open-minded conversation with a professional who offers such products

Are you opposed to learning new things?

#6 Withdrawal Rate Risk

Are you drawing too much money relative to your investible assets?

Some investors just take too much dang money from their portfolio, for one reason or another

Have you seen the statistics on withdrawal rate risk?

Here's an article by Schwab (click); by Morningstar (click); by Fidelity (click)

Are you opposed to using statistics to help guide your retirement decisions?

O.K. So What Now?

The Portfolio Protection Strore seeks to help retirees get retired and stay retired!

Ready To Learn More?

If you're in retirement or near retirement, have investible assets >$200,000, AND you're open to a discussion of potentially using at least $100,000 of your investible assets to create a guaranteed lifetime income stream using a fixed index annuity, then book a meeting with us to learn more.

I Want To Learn More

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