Remember the yellow page ads from years ago – “Let your fingers do the walking, it’s a snap!”

The yellow pages still exist in the phone book (I think), but how often do you use them to make a crucial decision when choosing a professional that specializes? Would you rather choose a doctor or dentist based on the best advertising or would you rather ask a few friends and co-workers or even other professionals from related fields of expertise?

**Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified.

 
Today, most of us have replaced the yellow pages with the internet. We Google-it now to find the information we need. The Internet can give us reviews and information about all sorts of products, services, and professionals – however, is it really any better than the old phone book? Actually, it’s much better! Yet, it is not likely to ever replace a quality referral from a trusted source and finding a retirement planning expert is no exception – a great retirement advisor can easily make the difference of barely surviving or thriving throughout retirement. Thus, do not skip the referral advantage when it comes to retirement planning!

Prior to picking a great retirement advisor make sure to talk with a few friends who are already retired. Solicit information from professionals in related fields like attorneys and accountants. We tell people to take their time planning for retirement, because typically they only get to do it once. A good retirement advisor will take the time to listen to your goals and dreams and then help you to craft a plan that has the highest degree of success.

A great advisor will examine a variety of products and options to construct a prudent plan that can meet your goals and objectives with the highest degree of certainty and **guarantees while offering flexibility for unexpected needs. The best advisors don’t promise more than they can deliver and if it sounds too good to be true, beware.

Picking a great retirement advisor is not an impossible task, there are many great advisors out there. Just ask.

Here is another helpful article on choosing the right advisor.

Is Your Adviser Still Right for Your Retirement?

The financial pro who gets you to your golden years may not be the right one to get you through them. Here’s how to tell.

By GLENN RUFFENACH

Let’s say you get a call from your financial planner, who, concerned that markets are significantly overvalued, has decided to park 20 percent of your portfolio in cash. Your first reaction might be, “Sure, that sounds prudent.” But, in fact, it might not be. Your planner may be giving the same blanket advice to all his clients the ones preparing for retirement now as well as those who are already retired and tapping their savings.

And if that’s the case, you might want to find a new adviser.

Yes, even if you have a good relationship with your financial planner perhaps especially if you do now is the time to consider: Is the person helping you prepare for later life really the best person to get you through that period? The answer, frankly, is often no.

For the past 30 years, the majority of financial planners have been doing primarily one thing: helping millions of baby boomers build a nest egg. That’s good. We’ve needed that
help.

Problem is, the distribution phase of retirement the time when you withdraw funds from savings makes the accumulation part look like child’s play, says Michael Gilbert, chief executive of Gilbert Advanced Asset Management in Kingsport, Tenn. When you’re working, your paycheck allows you to ride out periodic declines in your investments. But once you retire, you can’t afford a portfolio or an adviser that asks you to sit patiently through bear markets.

Take our starting example of a nest egg with one-fifth of its holdings in cash. If you’re retired and pulling a steady 4 percent from your savings each year (traditionally considered a safe withdrawal rate), and if the return on the cash portion of your portfolio is zero, you end up losing 4 percent on that chunk of savings. But if your financial planner invests that same money in the bond market and can get close to a 4 percent return you aren’t eating into your principal. “It’s the difference between a total-return manager and a retirement-income manager,” says Charles Farrell, a principal with Northstar Investment Advisors in Denver.

The former, which best describes the bulk of financial planners today, puts your money in the markets, diversifies and waits. And that works well if you have a long time horizon and don’t need the money. The latter is (or should be) focused on several chores at once: producing income, reducing taxes and growing your portfolio, “all for 20 to 30 years, regardless of market conditions,” Farrell adds. “That’s hard work.”

Indeed it is. And horsepower appears to be in short supply. “Do we have sufficient numbers of advisers with the needed expertise? I don’t think so,” says Craig L. Israelsen, an associate professor at Brigham Young University who teaches personal and family finance. Too often, he says, investors, no matter what stage of life they’re in, “get the same medicine,” the same financial strategies.

Don’t misunderstand: We aren’t recommending you dump your adviser tomorrow. But if you’re getting ready to retire, you need to ask him or her some pointed questions.

“How will we create income in retirement?” What you don’t want to hear, says Gilbert, is that an adviser is simply attaching an automatic 4 percent distribution strategy to your savings, adjusted annually for inflation. If you’re unlucky enough to retire into a lengthy bear market, your nest egg could expire long before you do. A better approach and again, one that takes time and effort is to assemble a diverse basket of income-producing securities (dividend-paying stocks, bond funds, master-limited partnerships) that yield both a stable “salary” and long-term growth. And speaking of income…

“What do we do when the sky falls?” Here, you want to pin down your adviser about potential sources of income for when the next economic calamity hits. (And it will.) Experts recommend getting your planner to articulate her strategy for sheltering your money in worst-case scenarios. And asking questions like these: What does my portfolio look like if markets fall 50 percent? How would I get distributions? What **guaranteed streams of revenue are built in? The answers, Farrell says, are not something to learn after the fact.

“Have you put my portfolio through a stress test?” As part of a recent study, Israelsen compared two mutual fund^{^}s, each with a starting investment of $100,000. Both funds, over the course of a decade, had identical annualized returns of 5 percent. But when he applied a real-world test to each withdrawing $5,000 at the end of each year the two funds had very different ending balances: approximately $68,000 and $101,000, respectively. The former, as it turns out, had steep losses early in the 10-year period. The lesson: A nest egg can look quite good on paper, he says. But when you subject it to stress (withdrawals, different levels of inflation, taxes), that’s when you see just how durable a portfolio really is.

Of course, whether you realize it or not, you’ve almost surely been down this road before. When you were young, a family pediatrician or, say, a high school coach provided the help you needed when it came to your health or developing your athletic skills. But once you moved beyond those years, you needed doctors and mentors with different, and sometimes more sophisticated, abilities. That same kind of thinking applies to your retirement.

Using OutCome Based Planning™ for Your Retirement

We practice and recommend a "Holistic - OutCome Based Planning™ process when considering annuities." This approach has the effect of balancing your overall portfolio so you can meet your retirement objectives by "first identifying the least amount of your investments or savings (if any) that should be considered for annuities." OutCome Based Planning™ analyzes and models multiple outcomes so you can clearly identify your best income and growth opportunities.

"The Annuity Guys will only call if you request help". Hence, when you are ready for specialized help we will be available.

"Working with an Experienced Fiduciary Financial Planner can help you Avoid a Trial & Error or Risk Based Retirement"

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