“Save a little money each month, and at the end of the year, you’ll be surprised at how little you have.” Ernest Haskins

Roughly four years ago, at this time, we began to feel the ground crumbling beneath our feet (metaphorically speaking) while we watched in amazement. The stock market lost over 1/3 of its value. Then the aftermath that lasted almost all of 2009 when everyone did very little, simply waiting for what they thought they should be waiting for. Technically, the recession ended long ago, but not that many of us are in a good mood yet. If you rely on interest income to meet your needs, you’ve got a long wait. Interest rates have effectively disintegrated and are likely to remain anemic for years to come.

Today, we have those very low interest rates, volatile capital markets, a European mess that has a life of its own but which will greatly influence our lives in the coming years, and a slowdown in the economies of China, India and Brazil. (And very little of that is Obama’s fault, never mind what Mitt says.) You say you are thinking about retiring soon? No, you’ve already retired? Well, good luck.

The successful financial planner of this decade and beyond is one who understands how to mix insurance products with wealth management in portfolios that create “solutions” for the financial issues our clients face. Consider the $million portfolio that must sustain a 70yr old retired client for life. A managed portfolio can provide an income of approximately $40,000 per year and it will likely last for their lifetime with some possibility of adjusting upward for inflation. Putting all of it in annuities can provide $65,000 for life but with limited options that make you feel trapped.

But, you might consider putting half of it in an annuity and half in a managed portfolio. That will get you about $52,500 with 30% of it tax free. You’ll have the ability to adjust for inflation or emergencies. And the next time the market tanks, which it will, the stress and fear and the effect on the portfolio will not be near as extreme.

The point here is that the “solution” is not an either/or equation, but a combination and diversification of financial products and securities that will create the best result.

Click on the smiley face above to watch a short video on the managed portfolio solution we recommend.