Common Myths About Retirement, Uncovered!!!

Common Myths About Retirement ~ January 23rd 11am @ the Platteville Public Library

If your like most people you have many questions about retirement. There is a lot of advice out there but much of it is untrue or outdated. At this event you will find out why everything you have heard about retirement is wrong!

I’m diversified so I will be ok with this crazy market

Diversification has become like pixie dust in the financial world. People hear that word and think everything is good because they are diversified, but that is not always the case.

The thought is if your diversified than you will have lower risk because you are not putting all your eggs in one basket as the saying goes, however, while diversification and asset allocation are important it does not guarantee lower risk.

The average 60/40 diversified portfolio, when stress tested has an average drawdown or loss potential of 30% – 50% or more. Is that lower risk?

I need a X amount to retire

The fact is, this, like many retirement questions, does not have a one size fits all answer. The right answer for you is found in a process. First, you have to start by what you want your retirement to look like. What do you want to be doing? Where do you want to live? Do you plan on travelling or fishing at your cabin? You first have to paint your DREAM retirement picture. Then, you need to think about what that will cost to be able to live the way you want. Next, you have to take a look at your complete financial picture. After that you need to determine how much income you will need to generate from your portfolio and then, you need to find out if your portfolio can sustain that withdrawal amount for retirement.

You can try to do this on your own, like finding your way out of a forest with a map and compass, or you can take a guide who has walked with others many times before and let them be your leader.

Taxes are not a problem in retirement, or my taxes will be lower in retirement

For years you have been told to put money in your 401k and IRA’s to reduce taxes. The problem with that is you didn’t really save taxes but deferred them. Now, the taxes on your retirement accounts are like the mortgage balance on your house, but the problem is the mortgage changes based on when you sell as it is based on current tax rates.

Let’s say you have a balance $500,000 in your IRA (or 401k). If I ask you how much you have, you say $500,000 but I would say, you don’t. The IRS is part owner in your account. If you withdraw the money, you would pay tax, so we would say in reality you own about $300,000 – $400,000 of your IRA. Taxes on your IRA’s are a big deal in retirement!


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Michelle Bertram and Beverly Bertram are financial advisors living in Mineral Point WI and serving the surrounding communities. Michelle Bertram does financial planning for retirees along with business consulting. Beverly Bertram specializes in retirement planning and income planning for her clients. Michelle Bertram and Beverly Bertram are authors of the book, Creating You DREAM Retirement and creators of the DREAM Retirement Process.
Serving Madison WI, Verona WI, Mount Horeb WI, Barneveld WI, Dodgeville WI, Dubuque IA, Platteville WI, Lancaster WI, Cuba City WI, Fennimore WI, Darlington WI, Monroe WI, Spring Green WI, Black Earth WI and beyond.

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