by Dave Kutcher
We get it. The financial world around you seems to be in chaos. Inflation is still rampant, the investment markets seem as volatile as ever, news of bank failures, interest rates keep rising … we get it. There’s a lot going on out there and trying to navigate this chaos and make good decisions is a daunting task.
When people contemplate all the slings and arrows noted above, there surely is a sense that a new reality may be at play for those approaching or starting their retirement.
Some recent studies show nearly 50% of those surveyed to say they have reduced or are stopping any further savings toward retirement and don’t expect that to change for the foreseeable future. Nearly the same amount of people feel they won’t be able to keep up with the continued rise in the costs of basic goods and services. 40% of people indicated that their personal retirement strategy is derailed at this point, and they aren’t sure when or how to get things back in line. A whopping response by almost 60% of the folks surveyed say they expect financial crises to be a permanent part of their retirement planning. This is a bleak outlook and has changed significantly from just a couple of years ago.
Here is the kicker, over 60% of people say they are most afraid of running out of money before they die and that they are more afraid of that risk than dying itself … yet 4 out of 10 say they don’t have a plan and almost 6 out of 10 say they have no idea what to do. So, guess what they do? NOTHING! Maybe you’ve heard the old saying “analysis paralysis”? It is a very real thing, and we see it every single day in our office.
People become overwhelmed when there is so much chaos and uncertainty in their financial lives and that leads people to indecision. Unfortunately, not making a decision is a decision itself and it just might be the worst one you make as you approach and begin your retirement years.
Our mantra is safety, growth and control. We’ve been through many, many historical financial debacles and we’ve learned a few things along the way. One thing we’ve learned is that when people understand their options, have choices that provide safety from losing their hard-earned nest eggs, continue to have opportunities to outpace inflation with growth on their assets, all while having a significant level of control for their future no matter what might come along, they tend to make good decisions for themselves.
The worst thing you can do right now is hunker down and do nothing. Come out and talk to us. We can help you contemplate what is ahead on this twisting, turning road that seems to hold new challenges around every corner.
We can help you contemplate the impact of taxes, negative investment returns, inflation, and the rising cost of healthcare. Let us help you get behind the wheel of your retirement tour bus and feel confident that no matter what you find around the next corner, you know you have positioned yourself to weather that storm.
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.
