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

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Retirement Planning

With or without a Retirement Plan you are making decisions today that affect your retirement. A Retirement Plan helps you look ahead and balance what you want to do today with what you want your retirement to be.

 There are two major issues that have to be dealt with in your retirement plan.
 •   You will probably be retired a LONG time. This fact has many major consequences.
 •   A retirement plan involves not only trying to shape the future to you best advantage but predicting the future. Unfortunately, no one can reliably predict the future. Thus, your plan needs a "Margin of Safety" to deal with the unexpected when, not if, it occurs.

We are here to help you plan your retirement and we hope that you will find this web page and its sub pages helpful not matter where you are in in the planning process. We are Fee Only advisors who get no commissions from our recommendations. This means we are objective and guided solely by your goals.

More pages about Retirement:

The Challenges of Being Retired a Long Time

When you take ever increasing longevity into account, when a couple retires at age 65 there is a 50% chance that one of them will live to age 95. This 30 years in retirement presents serious challenges.

  • You will be retired almost as long at the typical persons 40 - 45 year career.
  • Maintaining your preretirement lifestyle will require a LARGE retirement fund. We recommend a minimum $150,000 for each $10,000 in income that you are replacing.
  • Inflation. The Federal government has said that it wants a minimum of 2% inflation. At 2% inflation your pension and savings will lose 46% of their value over a 30 year retirement. At average inflation over the last 100 years both your pension and savings will lose 64% of their value in terms of what they will buy during the course of your retirement.
  • Unless kept small and carefully controlled, withdrawals from your savings above the income they produce each year, all too soon, leave you with no savings at all.

Dealing With the Retirement Planning Challenges

The need for a large retirement fund. There are three ways to deal with the for a large retirement fund:

  1. Work for a company or government agency that provides a generous retirement plan. Unfortunately, fewer and fewer companies provide a pension. In addition, few of these pensions are protected against inflation. Note, however, that everyone has an inflation protected government pension, namely, Social Security. Unfortunately, its benefits are not large enough to come even close to maintaining your pre retirement lifestyle.
  2. Start saving early, consistently and substantially. As our page The Advantage of Saving Sooner shows, starting to save early, ideally in your 20s, has a big impact on the amount of money you have when you reach retirement. That page also shows that the return you get on your savings is almost as important as the amount you save. As our Investment Advice page shows we have an excellent investment success record.
  3. Reduce your expenses in retirement. In practice, this is a part of almost all realistic retirement plans. The most common place to save significant amount of money is to downsize when your children leave home. However, ALL expenses need be examined for places to save.

Dealing with Inflation in Retirement. Before you retire inflation is a minor problem because wages do a good job of keeping up with inflation. Annuities and virtually all pension do not. As stated above, your pension and savings will lose 64% of their value in terms of what they will buy during the course of your retirement. However, As discussed in our webpage Investing in Retirement, there are strategies for dealing with inflation into your retirement plan.

Controlling withdrawals in retirement. The simplest way to see what you can prudently withdraw from your savings is to use one of the retirement withdrawal calculators on the web. The Vanguard retirement calculator is an easy to use example of such a calculator. However, remember that its very ease of use is only possible because it makes simplifying assumptions, which may or may not apply to your situation. In addition, history shows that their idea of what constitutes "conservative" or "moderate risk" investments are risky because they ignore the highly variable and unpredictable nature of inflation.

Retirement Plans Need a "Margin of Safety"

The purpose of a retirement plan is to prepare for the future. Thus, a retirement planning requires making predictions about the future. Unfortunately, no one can reliably predict the future. Thus, it is important that your retirement plan have a "margin of Safety". However, as our web page on Investing in Retirement discusses, having a "margin of safety" is different from investing or planning conservatively. In essence the problem with "conservative" investing and conservative planning is that it assumes that there are some predictions, the so called conservative ones, that one can reliably make. This is wishful thinking. A "margin of safety" based retirement plan assumes that no predictions are reliable so the plan has the flexibility to deal with the unexpected built into it.

A Good Retirement Plan Fits YOU

Senoirs walking on a wooded path

A successful plan combines a knowledge of what is important to you -- your goals and priorities -- with the financial knowledge needed to make your priorities a reality.

We have the Knowledge to Create YOUR Retirement Plan

Our senior retirement Planner, David Wertz, Ph.D., has the knowledge to create the Retirement Plan that will make your priorities a reality.

  • He has passed the Certified Financial Planner (CFPTM) exam. The CFP exam is the recognized standard for certifying people as financial planners.
  • Achieving your goals is easier if you can get good returns on your savings with reduced risk. Dr. Wertz has been successful using Value Investing to achieve this result. See the recommendation and visit our Investment Advice page for more information about his successful application of Value Investing.

We can also help is to guide you through the complexities of Social Security and Medicare. These program are there to help you but to save costs the government imposes arbitrary rules. As a result seniors are failing to take full advantage of these programs.

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.

Let's Get Started Planning Your Financial Success

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