The observation deck atop the CN Tower in Toronto has a built-in sway of 0.48 metres (1.7 feet).1 The reason? As engineers have long known, when buildings are capable of moving with the wind like a tree, they can withstand strong gusts. By the same token, clients need to be able to adjust to new realities that can alter their retirement picture dramatically. This month’s pick of the web:
Deal with uncertainties in retirement calculations. Darrow Kirkpatrick’s Money article makes the case that retirees can’t eliminate the big unknowns of retirement – how long they’ll live, how their investments will perform and the inflation rate. But by creating a best-case, worst-case scenario for clients, you can help them cope with whatever life has in store.
Adjust for volatility. For clients contemplating retirement in the next year or two, what Ryan Derousseau calls “that ‘V’ word” is a factor, with many prognosticators warning of a potential bear market.His Fortune story looks at options for coping with volatility, from working longer to setting a floor and ceiling on withdrawals. And the Globe and Mail’s Jacqueline Nelson explores the dangers of overinvesting in the stock market, particularly for older folk.
Don’t let the vagaries of life derail plans. Writing for the Financial Post Magazine, Andy Holloway contends that “life stinks for a variety of reasons,” among them, divorce, disability, unemployment (or underemployment) and the illness of a parent, child or spouse. He makes the case that, when preparing for the worst, clients need to give themselves maximum flexibility.
Consider housing options. Jeff Reeves’ USA Today article considers ways clients can reduce their monthly bills by downsizing or relocating. Are your clients looking further afield? CNBC offers a list of five places around the world to retire on $1,500 a month.
1 The CN Tower. https://www.ieee.ca/millennium/cntower/CN_Tower.pdf