by Dave Kutcher
One thing there is no shortage of in our business is client/customer surveys. Financial Services companies are always seeking to keep their thumb on the pulse of the public in terms of investor sentiment. Of course, we have our own personal observations to rely on and what we are seeing today does seem to support what we are seeing in many of the surveys we’ve seen over the last several weeks.
You don’t have to be a rocket scientist to see how the current economic environment is cause for concern for many people. Our primary market is very heavily weighted in the age group of folks that are very near to or at the beginning stages of their retirement distribution phase of their life. It is no surprise that these folks are fearing the impact of current events more than the younger generations.
We understand the concern; high inflation, bank failures and stock market volatility are just the beginning. Valid concerns for hitting the debt ceiling and all signs that significant recession is on its way add more and more anxiety and nervous tension to the mix. Rightfully so, folks that don’t have years and years ahead of them to ride out this brewing storm are seeking advice and counsel as to how they can be sure their treasured nest egg does not suffer irreparable harm as they are about to embark on their long-awaited golden years.
If you have been following us for any time, you have heard us talk about the impact of a “negative sequence of returns” for folks at the precipice of their retirement. There is a vast difference between being able to ride out a negative market when you are 30 years old and one where you are in need of generating retirement income distributions in the near or current time frame.
One of the surveys we just reviewed showed that 63% of people in the age brackets that we work with believe they will not be able to survive the next financial crisis despite having lived through financial crisis previously. This group of folks expects a prolonged period of severe market downturn and further instability beyond that. Older generations have weathered many financial storms and people are proceeding with caution, as we might expect. There is far more at risk for those with less time ahead of them. You simply don’t have a long enough runway to make up for lost savings during this time in your life … we understand why people are afraid of what is coming.
While we can’t predict any better than anyone else what is on the way, we do consider ourselves quite proficient in positioning people in a way that can provide safety, growth and control of their cherished nest egg.
Living life filled with financial anxiety is not a recipe for an enjoyable retirement. Don’t put off seeking help. You have worked hard to get where you are today and not making any decisions is a decision itself. So … Never fear, the Captain is here.
I am Dave Kutcher, a retired Marine Corp Captain and founder and owner of Kutcher Financial Services in Eagle River. We are on the radio every Saturday morning, “Retirement in the Last Frontier”, 8:30-9:30 on AM 650, Keni Radio. Kutcher Financial Services, 10928 Eagle River Road; Eagle River, AK 99577, (907) 795-7452.
