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Our Owner, David Wertz is Retiring so we are no longer taking clients

Financial Planning in your 50s and early 60s

This Financial Planning discussion is aimed at pepole in their 50s and 40s. At this age your children have either left home or soon will be. The big event facing you is retirement. We can tell your options and help you chose the course that is best for you.

There are two part to a Financial Plan

  1. Protecting what you have already
  2. Preparing for the future, which in your case means preparing for retirement

Preparing for Retirement

The most important fact a Retirement Plan has to deal with is that you will be retired a long time. For example, when a couple retires at age 65 there is a 50% chance that one member of a couple retiring today will live to age 95. This long time in retirement has serious consequences.

  • Maintaining your preretirement lifestyle will require a LARGE amount of money. Assuming that long term average investment returns you should have at least $150,000 in retirement investments for each $10,000 in retirement income. Note, your house doesn't count because instead of producing income it is an expense.
  • With ever increasing life expectancies comes an ever increasing likely hood that at some point you will need help carrying out basis activities like getting out of bed, dressing and eating. Long term care insurance will help pay some or all of cost of getting this help. Unfortunately, long term care insurance policies are very EXPENSIVE. The sooner you take out coverage the smaller the premiums will be. In addition, you have a large number of options both in the type of long term care you that receive and in the coverage you get. Our long term care web page gives you information plus links to other sites that will help you make this important but complicated decision.

How We can Help

Given the above, a Retirement Plan is a must and just having a retirement saving account like a 401(k) or IRA doesn't qualify as a plan. Instead, a retirement plan consists of a knowledge on your part of the assets you will need when you retire and a plan to get there. We can show you what you need and create the plan that is right for you.

As our page The Advantage of Saving Sooner shows, almost as important as the amount you save is the return you get on your savings. As the recommendation and our Investment Advice page shows we are have an excellent investment success record.

Paying for College. If you still have children in or close to going to college you have more options than you probably realize. Let's talk about them.

We will help you sift through the options and help you decide what is best for you. Because we are Fee Only advisors you can be confident that the advice we give is objective and unbiased.

Let's Get Started Planning Your Financial Success

Click for the BBB Business Review of this Financial Advisor in Mount Laurel NJNo question is too small."

Your initial consultation is free and without obligation.

Click Here to have Dr. Wertz contact you.

or Call (856) 581-9075

Protecting what you have checklist

  • Cash reserve equal to 3 to 6 months of expenses for emergencies or if you lose your job.
  • Insurance Must Haves: Health Insurance for the entire family, Homeowners or Condo owner's Insurance, Disability Income Insurance which replaces lost wages if you become disabled and unable to work for a period of time,
  • Pay down your debt. In particular, don't carry expensive credit card balances. In addition, see our comments below on why a house is more of a liability than an asset.
  • A WILL. A Will is critical if you have dependant children because it appoints who will take care of your children if you can't. In addition, with proper planning your Will can minimize and even avoid most estate taxes.
  • Healthcare Power of Attorney and Healthcare Directive which together appoints one or more people to make decisions about your medical care if you are unable to and gives them directions about your end of life wishes.
  • Umbrella Insurance. While most of the legal liabilities that you face are covered by your Car Insurance and Homeowners Insurance, they are not the only ones you face. In addition, the limits on both of these policies are not high enough to cover your of a really bad accident. Umbrella Insurance policy covers these additional risks.
  • Life Insurance. The purpose of Life Insurance is to make up for at least some of the income that your family would lose if you were to die. Since the amount you will earn for the rest of your life goes down as you approach retirement, the amount of life insurance needed decreases as you approach retirement. How much you need also depends on how many dependants you have living at home and their ages.

We will be glad to discuss the kinds and amount of insurance that you should have. Note that we not only have the expertise you need but as Fee Only advisors you will have confidence that the advice we give is objective and unbiased.

Fee-Only Advisor

We are fee-only financial advisors, which means that we receive no commissions or fees from the sale of the products we recommend. This is important because many of the financial products that we and other Financial Planners recommend have traditionally been sold by paying commissions to the person who recommends them. Because we get no commissions we are objective and guided solely by what is best for you.

WHY a House is More of a Liability than an Asset

A house more of a liability than an asset because it meets the definition of a liability. Namely, a liability is something that costs you money both now and in the future. As everyone knows, maintaining a house and paying taxes on a house is very expensive.

Of course, everyone needs a place to live so we are not telling you not to buy a house. What we are saying is:

You should buy/keep the house that you need NOT the house you can afford.

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