Securing a Retirement Income for Life

Amazon Kindle eBook Reader Review

2010-06-02T23:56:00.000-04:00

Amazon Kindle wireless reading device used in college pilot program makes it difficult to study according to Kindle review.

In a previous post I mentioned that my book Securing a Retirement Income for Life is only available in paperback. It is not available on the Amazon Kindle wireless reading device.

My point in writing about the Amazon Kindle was that in order for readers to experience the principles that set the process in motion towards achieving their goal of financial security and financial independence, it is necessary for them to actually read the printed book.

The Amazon Kindle is actually a pretty cool wireless reading device. I had a chance to read a few pages from various college textbooks on my son’s Kindle. He just finished his first year of college. As a first year student in engineering, he had a chance to participate in a pilot program for the Kindle. As a participant in the program, he used the Amazon Kindle eBook reader in place of textbooks.

Now that the school year is over, it was interesting to hear his Kindle review. So, was his experience with the Amazon Kindle better than with traditional college textbooks? Here is his assessment of the Amazon Kindle wireless reading device: It was interesting at first but I found it difficult to study. The screen refreshed too slowly and it wasn’t easy to go back and refer to something since there aren’t any page numbers. The overall experience did not serve me well.

Ticking Time Bomb: 43% of Workers Have Less Than $10,000 for Retirement

2010-03-10T15:53:00.002-05:00

Much of what people are reading lately is about the overall lack of savings and the risk of running out of money in retirement. In one respect, this is good because it does highlight the problem of reaching retirement age with insufficient savings.

As indicated in the press release from the EBRI, fewer and fewer retirees can count on income from defined benefit pension plans. The burden of saving has shifted to the employee who must save through company sponsored DC plans.

Unfortunately, most individuals are not investment professionals. They are hard working people from all walks of life who have focused on their careers and providing for their family. Many people have not had the pleasure of focusing on the quality of their retirement life and whether they will indeed have the financial ability to live out their dreams. Instead, they have been planning to arrive at retirement.

What people need are solutions. They need to know what they can do. For example, many people have portfolios that have declined due to the financial crisis. It is important for people to understand that there are different investment approaches for different market regimes. They need to know how to protect their portfolio from changes in market conditions.

With the right information and unbiased financial advice, people can start from where they are right now and take control of their financial situation and provide for their own financial security and independence.
Read the Article at HuffingtonPost

Christmas Holiday: Gift Books

2009-12-05T21:40:00.009-05:00

Have you recently ordered the Second Edition of Securing a Retirement Income for Life through your local bookstore or online from leading booksellers?

AMERICAN CYANAMID by George Eastman House

I understand that booksellers are currently experiencing a significant increase in orders which is probably due to the Christmas holiday season.

The Christmas holiday is a great time to buy gift books and these days with the uncertainty in the market, almost anyone will enjoy finance books about managing, protecting and preserving their wealth. The markets are more volatile than most investors realize and readers of Securing a Retirement Income for Life will undoubtedly be better positioned for the future.

As a result of this increase in book orders, however, the delivery time may be longer than expected. If you would like to receive your gift books in time for the Christmas holiday, please order early to avoid the possible delay of your shipment.

Thank you and best wishes for a delightful holiday season!

Discount Purchase Program

2009-11-18T12:34:00.002-05:00

We have received several requests from companies, large and small, interested in purchasing a quantity of our best-selling book, Securing a Retirement Income for Life for employees, customers and clients.

This book is available at a special quantity discounted price to use as a premium or for educational purposes. Books must be purchased in boxes of 20 (please call for pricing).

If you would like to purchase a quantity of books for your employees, customers or clients or if you have any questions, please call 724.228.3440 or write to W.E. Griffith Publications, 1150 Washington Road, Suite 200, Washington, PA 15301.

G20 Summit 2009

2009-09-21T21:03:00.008-04:00

The G20 Summit 2009 will be held on September 24th to the 25th in Pittsburgh, Pennsylvania. This is a great opportunity for the world to see Pittsburgh in a new light rather than the “smoky city” image of the past. It’s unfortunate that even to this day many people from outside of Pittsburgh still have that image.

Pittsburgh Skyline by JCardinal18

For those of us who know, Pittsburgh has made an incredible transformation over the years. This summit is an opportunity for Finance Ministers and Central Bank Governors from countries including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and the United States to see how Pittsburgh has emerged to become the world class city it is today.

Of course the G20 members will be in Pittsburgh to discuss key issues in the global economy. On a personal level, many people can certainly relate to how their retirement plan was affected by the economy and the recession over the last two years.

While a recovery can certainly help to ease some of the pain, the fact of the matter is that someday it will happen again. Hopefully, some people will take action and determine what changes can be made in their retirement plan to protect their retirement savings from another market decline or bear market.

Pittsburgh is much different than it was decades ago. In much the same way, we as individuals are different after we make it through a time of difficult financial circumstances.

While a discussion about key issues in the global economy is necessary, it is not sufficient. Just like a discussion about key issues pertaining to retirement and retirement planning is necessary, it is not sufficient.

Will a discussion about relevant issues in our economy influence financial decision-making such that people actually begin to take action?

Retire Early

2009-09-12T00:49:00.001-04:00

Are you planning to retire early? The key factor for those who are planning an early retirement is to protect your retirement funds from another bear market.

There’s been a lot of information published recently about the fact that many people close to retirement age have seen their retirement funds disappear as a result of the recession and how delaying retirement by working longer might help them recover some of their losses.

While working longer than planned as a result of the recession can give them more time to save and presumably more time for their retirement savings to grow before they retire, what if there is another extended market decline (or bear market) right after they retire?

The key factor for those who are planning an early retirement is to optimize your investment portfolio with a mix of assets that will protect your retirement funds from a market decline or bear market and give you the income you want during retirement without exhausting your funds too soon.

After you start taking money out of your portfolio, a steep loss in your retirement investments due to downward fluctuations in the equity markets will increase the probability of premature portfolio depletion unless you have the right mix of assets to provide an income for life.

The Roadmap to Your Success

2009-09-04T14:02:00.002-04:00

There are two very powerful principles that are an important part of the roadmap to your success. It is very important for readers of Securing a Retirement Income for Life to experience them. Since the actual power behind them can only be experienced in the paperback version of the book, an ebook version is not currently available.

Although you could read the book on Amazon’s Kindle (if it were available), for example, you would not be able to experience the principles that set the process in motion towards achieving your goal of financial security and financial independence. I explain the power behind them in Chapter 1 of my book and why it is so important if you actually want to be living the life of your dreams.

By the way, I actually had the chance to experience Amazon’s Kindle for the first time recently and I have to say it is a pretty cool device. I read a few pages from various college textbooks on my son’s Kindle. He is currently using it in college. He just started college this year and only time will tell if his experience with the Kindle is better than with traditional college textbooks.

The bottom line is this: The positive effect of these two very powerful principles is supported by empirical evidence. In other words, those who put the power of these two principles into motion accomplish significantly more than those who do not.

The power of these two principles will help you immensely if you set the process in motion towards achieving your goal of financial security and independence.

National Long Term Care Awareness Month

2009-09-02T19:38:00.003-04:00

The month of November 2009 has been declared National Long Term Care Awareness Month, and the U.S. Congressional Resolution says it best: “Encouraging people in the United States to anticipate and plan for their future long term health care needs will help them achieve greater independence, choice and control.”

I thought you might be interested in some information that I have gathered from various expert sources. It answers the questions asked most often.

Q. Isn’t long term care something to think about when I’m retired?

R. It’s smart to start earlier. First, you are more likely to qualify for good health discounts that can save you from 10-20 percent yearly. You lock in the savings and guarantee your insurability even if your health changes. Plus, the cost of protection increases by 9 percent every year you wait.

Q. Are there ways to deduct the cost of long term health care insurance?

R. Yes, to encourage more people to plan for their future long term care needs, the federal government now permits tax deductions for insurance. The rules are especially beneficial for small business owners who can deduct the cost for themselves and even their spouses.

Q. Isn’t long term health care insurance expensive?

R. This is one of the biggest misconceptions. According to the American Association for Long Term Care Insurance, a 55-year old can get good quality protection for less than $1000 per year. There are many discounts available today for married couples, non-smokers or those who add a deductible.

Q. What if I never need this?

R. First, consider yourself lucky. Like your car insurance or your home insurance, you hope you’ll never need it. But, if you do, you’ll be glad you had some protection in place. And you may want to consider an option that refunds all your costs if you never use the policy.

Eight million Americans now have long-term care insurance protection in place. If I can answer any of your questions or provide you with information about the cost of protection and how to evaluate all of the options, please feel free to contact me.

Retirement Income – Implications on Retirement Planning

2009-08-29T14:15:00.003-04:00

Although recent events in the economy have impacted retirement security, a trend emerging in our society will help people achieve financial security and financial freedom in retirement.

Every so often, I take some time to reread portions of my book to see if what I wrote is as applicable today as it was three years ago when Securing a Retirement Income for Life was first published. Today, I reread the Preface. I can honestly say that everything I wrote in the Preface three years ago could very well be written today.

Everything I said about the new retirement and how significant changes over the years will have profound implications on the retirement planning process is in fact happening, especially with regard to managing your retirement savings. For many people, the recent events affecting the economy over the last five has impacted them personally as well as financially. In many cases, the effects have been enormous. I mentioned this risk on the first page of the Preface and how it can have a tremendous impact on retirement security.

Fortunately, there is a shift or a trend emerging in our society, in response to the changing retirement landscape that will help more people achieve their goal of financial security and financial freedom in retirement.

Protecting Your 401k from a Decline in the Equity Markets

2009-05-07T10:40:00.003-04:00

I read an article recently about a movement being led by retirement experts from The Brookings Institution in Washington that would allow 401k participants to direct a portion of their retirement plan contributions into a guaranteed-income offering in 401k plans - the idea being that 401k participants could protect a portion of their retirement savings from a decline in the equity markets.

While this new initiative is apparently aimed at persuading lawmakers and employers that guaranteed-income vehicles are a critical component of America’s 401k plans, the concept of protecting a portion of your retirement savings from a decline in the equity markets is not new. I have been using this strategy for many years in my practice. In fact, I write all about it in my book. Chapter 7 describes in detail the concept of placing a portion of your investment portfolio in a tax-deferred savings vehicle that will 1) protect your retirement income from a market downturn during retirement, and 2) provide a stream of income guaranteed to last for the rest of your life.

Understand that although proposals are being developed to increase the interest and the usage of guaranteed-offerings in 401k plans, many plan participants can implement strategies to protect a portion of their retirement savings via guaranteed tax-deferred savings vehicles right now. In other words, you do not have to wait for the availability of such a program as an option within your particular company plan.

In Chapter 7 of my book, I describe the process of converting a portion of your portfolio into alternative tax-favored savings vehicles to protect a large portion of your assets from market declines increasing the lifespan of your investment portfolio.

I’ve also written about another opportunity that many people may have to move a portion of their money and protect it from a market downturn. An in service, non hardship withdrawal may provide early access to your retirement account if it is permitted by your retirement plan. If permitted, you may be able to request an early retirement account distribution which can then be transferred directly to a rollover IRA where a portion of your retirement assets can be placed in a guaranteed tax-deferred savings vehicle designed to protect your retirement income from a market downturn during retirement. It is important to understand that with this option any money you take out in the form of a distribution is subject to ordinary income tax and a 10% penalty tax if you are under the age of 59 1/2.

How The Defined Contribution Plan Has Revolutionized Retirement Planning

2009-05-04T23:53:00.001-04:00

The shift away from the defined benefit pension plan to the defined contribution plan is a trend that has revolutionized retirement planning by placing more of the responsibility for saving on the individual. Unfortunately, this responsibility comes with a price. Many individual investors have lost money in mutual funds, 401k plans or in the stock market over the last year and a half and those closer to retirement may never recover their losses. In fact, the bear market has left many investors afraid to even look at their investment account statements.

How has the bear market changed your plans for retirement?

How long do you think it will take for you to recover from the recent market decline or bear market (Hint: See Chapter 7)?

Do you have a plan to help you rebuild your investment portfolio?

Now is the time to review Chapter 6 in my book about the process of building financial security. In this chapter and throughout my book, I have provided the tools, developed from leading research in the financial planning industry, to help calm your fears and to help you to achieve your goal of financial freedom.

Use this process of building financial security to realize your potential with a sound plan and the best strategies for managing, protecting and preserving your wealth.

More Money for Retirement Right Now

2008-08-20T14:24:00.002-04:00

In order to fully enjoy a quality retirement, you may find that you are in search of ways to supplement your income from Social Security benefits, a pension plan or investments. These three sources of income have often been referred to as the three-legged stool. As you may know, fewer and fewer retirees can count on income from a defined benefit pension plan. The burden has shifted from the employer to the employee who now has to provide for his or her own financial future through a company sponsored defined contribution plan.

So, what if your retirement investments in your 401k or other retirement plan, your IRA and other investments are not enough to provide for the kind of retirement you are dreaming of? What can you do? You may wonder if you still have a chance to live out the life of your dreams.

My new book, More Money for Retirement Right Now: Unlock the Equity in Your Assets, Create Immediate Income and Live a Richer Life is for those who want to take control of their financial situation- to maximize their financial resources – to provide for their own financial security and independence. It is full of creative, wealth building ideas and unique financial strategies and options to supplement your income from Social Security benefits, a pension plan or your investments. These little known strategies and techniques add a new dimension to retirement planning and another leg to the stool by incorporating new sources of income.

Why limit yourself to the traditional sources of income you may receive from Social Security, a pension plan or your investments. By unlocking the equity you have in your “hidden assets,” you can free-up cash to build more wealth and create new “income steams” from assets you previously ignored.

Whether you’re retired, nearing retirement or many years away, this book shows how you can enhance your income using your existing assets and investment portfolio and provides the information you need to make more money for retirement right now. It provides a thorough, yet totally practical evaluation regarding the uses and implementation of these strategies to maximize your financial resources.

I think you’ll be surprised to find out how much more money you could have for your retirement and how much more you can enjoy the quality retirement you envision.

More Money for Retirement Right Now (Griffith, 2008, ISBN 0-9785506-4-1) is available through your local bookstore or online from leading booksellers.

Investing for Retirement in a Volatile Market

2008-06-08T13:47:00.003-04:00

This is a tremendous time to be investing for retirement. Turbulent markets can be one of the best times to build assets for the future. There are huge opportunities for those who are focusing on building wealth for retirement. Even recessions provide an opportunity because ultimately periods of economic contraction lead to the next cycle of economic expansion.

Understanding this can make investing in a volatile market somewhat easier. In the current market, in which there is a steady stream of weak economic news, there is considerable market volatility. This creates considerable anxiety among many investors but even as news about the economy and the markets is pessimistic, historical records of market recoveries justify optimism – that patient investors who maintain their course will benefit in the long run.

Building Wealth the Professional Way

Simply put, history shows that in the face of tough times, the key is to develop a plan, maintain your course and avoid emotional decision-making. We have all learned over the years that a written plan with solid goals and objectives is the best way to achieve anything. If you are a younger investor, you may have many years to go before you retire. Your working years represent your accumulation years. In Chapter 4 of Securing a Retirement Income for Life, you read about building a successful investment strategy. All of the material in this chapter includes the most recent research and cutting edge ideas used by the top investment professionals. Now is the time to maintain a diversified portfolio as described in that chapter. Review Chapter 6 for help with creating an asset allocation strategy for your retirement investments. If you become overly concerned about market volatility, you should reassess the level of risk in your portfolio. Market volatility is nothing new. Patient investors with a long-term investment horizon and a diversified portfolio will eventually be rewarded. In times like this, it is important that you maintain your course and avoid emotional reactions.

Of course, as the markets shift and your needs and goals evolve, a reassessment and fine-tuning of your portfolio may be appropriate. With an understanding of your own retirement needs and – most importantly – a retirement plan with solid goals and objectives, you will benefit in the long run from a market recovery and from significantly higher average annual gains.

Achieve Financial Freedom

The bottom line is this. If you are still investing for retirement, I strongly encourage you to take advantage of this great opportunity. You cannot afford to miss this incredible opportunity to build more wealth for retirement. If you follow the important topics discussed in my book, you will know how to achieve your goal of financial freedom.

Making a Large Life Insurance Purchase Without the Proper Advice

2008-05-06T18:18:00.003-04:00

One of the most common mistakes made by individuals who purchase large life insurance policies is making life insurance purchase decisions without coordinating their life insurance needs with other aspects of their financial situation, such as investments, retirement planning and tax issues. I see this most often in my wealth management practice with high net-worth individuals.

Certain types of policies are more appropriate for different circumstances. For example, you could end up buying a certain life insurance policy directly from an insurance agent. Your average life insurance agent may not have the prerequisite training and expertise to analyze and evaluate your investment portfolio, estate plan, cash flow and retirement plan prior to making any recommendations to buy life insurance.

Without the prerequisite training and without spending sufficient time getting to know you, it is not possible to recommend a personalized strategy designed to protect and preserve your assets, minimize taxes and increase your wealth.

The fact of the matter is that financial planning for most high net-worth individuals is far too complex for most insurance agents. It involves a number of complex, interrelated areas such as asset allocation, investment planning, retirement planning, insurance needs analysis, tax planning, as well as charitable giving, retirement, special needs and legacy planning and estate planning. What’s more, each area of financial planning is constantly evolving. Those who do piecemeal planning by engaging several different advisors who do not work together are simply fooling themselves and jeopardizing their families' financial future.

Not surprisingly, by making large life insurance purchase decisions without professional guidance and without considering the many complex aspects of financial, tax, insurance and estate planning, many people make critical mistakes that could cost themselves and/or their beneficiaries a small fortune. An independent life insurance agent may not know which policy may be more efficient for you and/or whether the cash value in an existing life policy could be put to better use achieving your other financial goals. In addition, he or she is often unaware of various wealth-building strategies that could increase the magnitude of your wealth.

Make sure you coordinate your life insurance needs with other aspects of your financial situation, such as investments, retirement planning and tax issues prior to making any large life insurance purchase decision. The interesting case scenarios in Chapter 2 of Securing a Retirement Income for Life highlight the need to understand the issues inherent in protecting and preserving your wealth. In Chapter 9, I address how tax planning, trusts for heirs such as children and grandchildren, charitable giving, selection of executors and trustees, asset titling and how the execution of certain estate documents and trusts would prepare your heirs for income and estate tax consequences, if any.

The manner in which you purchase life insurance is particularly important. Done correctly, it can help to ensure your long-term financial security and independence and create from many thousands to millions of dollars in multigenerational wealth. If done incorrectly, it can have extremely adverse financial consequences for you and your family and ruin your plans for retirement and the distribution of your wealth.

What to Do About a Market Meltdown: Part Two

2008-02-08T22:53:00.001-05:00

Opportunities Abound

Amid the current economic climate, opportunities abound for investors to bolster their retirement investments. Virtually every day, the financial news is all about the market’s recent volatility and the likelihood of a recession. As usual, all of this negative news is causing some people to make bad investment decisions based purely on emotion. When stock prices are declining, many people make emotional decisions based on fear and begin to liquidate their investments. As you know from reading my book, this is the exact opposite of what many people should do during a recession or market decline. While you should always construct your portfolio based on a rational investment process as described in Chapter 4, a recessionary environment could present an opportunity to increase contributions to your 401k plan and to your taxable investments as well.

If you are investing for retirement, the following steps will help you keep market declines in perspective and potentially help to accelerate the growth of your portfolio when the market recovers:

Reassess Your Goals and Your Risk Tolerance

A recession or market decline provides an opportunity to reevaluate your current investment strategy in relation to your objectives and personal risk tolerance. There is no one particular investment portfolio that is appropriate for all individual investors. The optimal portfolio will depend on the amount and timing of your cash flow needs, tax considerations and market conditions. If you feel there has been a change in your personal objectives or a change in your ability to tolerate risk due to what is going on in the economy, you should reassess the level of risk in your portfolio and reallocate your investments as needed.

Evaluate Your Diversification

You’ll want to make sure your portfolio is well diversified based on your time horizon and risk profile adjusting your holdings as asset values change in order to maintain the desired allocation between stocks, bonds and cash. Depending on your time horizon, a market decline may provide an opportunity for you to increase your holdings. If you are currently investing for retirement by making regular contributions to your 401k plan, a market decline may present an opportunity for you to purchase more shares of the underlying assets at lower prices.

Remain Focused on Your Long-Term Plan

When investing for the long-term, you should not overreact to a short-term market decline. Instead, you should remain disciplined and look at your investment portfolio in the context of your overall financial plan. When the economic climate looks gloomy, many people will succumb to what they hear and read in the media by liquidating their investments. This opens up opportunities for knowledgeable investors. Rather than avoid the market, smart investors - with the patience and commitment to remain invested through the volatile weeks or months - will be rewarded when the market recovers.

By remaining disciplined amid market turbulence, you may benefit from significantly higher average annual total returns when the market recovers. Investors who remain invested avoid the potential penalty of missing the best days when the market advances the most. Although we can never be sure when the economy and the market will recover after a short-term decline or recession, sometimes a recovery can be dramatic. Do you know what the average gains were in each of the two previous recessions 12 months following the market bottom?

What to Do About a Market Meltdown: Part One

2008-01-25T17:23:00.001-05:00

Protecting Your Retirement Savings

For many people, the short term pain of watching the value of their retirement savings drop during a recession or bear market can give them a reason to question the validity of investing in the capital markets. No one seems to mind when things are going well, which is typically during an economic expansion or lengthy bull market. Maybe you’ve had the opportunity to experience one yourself and how a period of exceptionally high annual returns can accelerate the growth of your investment portfolio. On the other hand, a down market, characterized by a bear market or recession, provides a reality check and an opportunity to revisit your long-term goals. For some people, however, a decline in the market can seriously affect their ability to maintain their chosen lifestyle.

For example, a declining stock market resulting in short term losses during the first few years of a distribution (retirement) portfolio can destroy a retirement plan. A distribution portfolio is a portfolio where there are periodic withdrawals and no cash flows in. When there are no cash flows into a portfolio, short-term losses can cut the portfolio lifespan dramatically. In many cases, short-term losses can cut the portfolio lifespan in half, which means you would need significantly higher gains (returns) in the future to recover from those losses.

The fact of the matter is, it is not so much about historical averages or what the market will or will not do. Market conditions and the economic environment change over time and stock market volatility is an inevitable part of investing. In the distribution phase, it is more about designing a portfolio that will account for the sequence of returns and fluctuations in the value of your portfolio.

If you have prepared an investment plan that will account for fluctuations in the value of your portfolio as described in Chapter 7 of my book, then you should not be unduly concerned. Nor should you overreact by abandoning your long-term plan. Overreacting to a market meltdown or recession by changing the composition of your portfolio could seriously hamper your ability to achieve your goals.

For those who have experienced a lengthy bear market or recession in previous years, let me ask you a question. What happened afterwards? If you remember the last bear market or recession, then you should know that our economy has always recovered. What did you do during the last market decline? Did you abandon your long-term investment plan?

How to Manage Your Retirement Savings

2008-01-18T23:38:00.001-05:00

Decisions about how best to manage your retirement savings are a function of your priorities, the kind of retirement livelihood you want, your accumulated assets and what you really care about.

The need to optimize your retirement portfolio in order to convert your accumulated assets into a stream of income without exhausting your funds too soon is not a simple matter due to uncertainties, such as the length of you retirement lifespan. Conventional wisdom and “rules of thumb” regarding the issue of standardized withdrawal rates do not protect against the risk of outliving your assets. How do you make sure that you do not run out of money? How do you ensure that you can achieve the kind of retirement lifestyle that you want?

The answers to these questions and others about the best way to manage your retirement investments depend on the nature of your retirement accounts, what your portfolio is invested in and your priorities. Are you concerned about market volatility? Are you concerned about how best to plan for retirement spending?

In addition to making periodic withdrawals from your investment portfolio over the years, you must develop an investment strategy – how much to allocate between stocks and bonds. However, a withdrawal plan, which requires you to draw a fixed amount from a portfolio consisting of investment assets, involves the possibility of depleting your portfolio too soon.

The advantage of such an investment based withdrawal plan is that of increased liquidity, participation in the capital markets and the possibility of leaving an estate. However, the problem of running out of money is compounded by the uncertainty of assumptions about capital market performance, the length of your retirement lifespan and consumption. In light of these uncertainties, how do you lessen the possibility of running out of money? The risk of running out of money can be mitigated by optimizing your retirement portfolio with an “asset mix” that can be set to eliminate the possibility of depleting your retirement assets.

An important question to address is whether you would benefit from following a “mixed withdrawal strategy” backed by a properly diversified investment portfolio. By quantifying your risk and return profile, you can develop a withdrawal strategy based on the expected value of your 401k and other benefit payments. The appropriate mix depends on your attitude toward risk, your need for liquidity as well as key assumptions regarding the capital market.

The best plan will provide the benefit payments you need for your level of retirement spending without the risk of your payments falling and without the risk of running out of money.

Resources: For more information about managing your retirement savings, see Chapter 7 of Securing a Retirement Income for Life: Strategies for Managing, Protecting and Preserving Your Wealth.

Increasing Your Retirement Income

2008-01-10T13:42:00.002-05:00

Receiving a secure retirement income for life is not a matter of luck, circumstances or fate. The power to achieve the life of your dreams is in your hands. The first step toward transforming your life to one of extraordinary proportions is by identifying the specific goals that will make your dreams a reality. After all, it is much easier to get what you want out of life if you know where you are going. And the two things you need most to get what you want out of life are solutions and direction. Solutions and direction are the two things that will help you achieve your goals.
Are you ready? Getting what you want out of life is not about intelligence or luck; it is about education. It is about mastering the skills and the mindset that separate the top 2% of America from the rest. The good news is that these skills can be learned.
The strategies described in my book provide real solutions that lead to specific, measurable outcomes. Can these income increasing and wealth building strategies really work for you? Absolutely. But the speed and magnitude is totally up to you. Once you learn about the skills and the mindset that separates the top 2% of America from the rest, you will be rewarded, perhaps with an immediate increase in your income or with an increase in the magnitude of your wealth.
Making the decision to change your “direction” is truly the best way to start your journey to success.

Let me give you an example of two people, each working for the same company and each earning the same annual income. Investor “A” relies on faulty “rules of thumb” to make his decisions. Investor “B” takes a realistic approach to creating personal wealth using a structured approach to decision-making that is resistant to the usual emotions that typically affect long-term investment success. Research conducted by Financial Research Corporation showed that most investors underperform the very funds they are invested in by 2.2%. For example, the average annual mutual fund return for the period from January 1990 to December 2000 was determined by the study to be 10.90%. The average annual investor return during the same period was 8.70%. Let’s assume that by relying on “faulty assumptions”, Investor “A” under performs the average annual mutual fund return as indicated by the study. An investment of $250,000 by Investor “A” growing at an average annual rate of 8.70% would be worth approximately $1,325,961 in 20 years (before taxes). Investor “B” makes his decisions using a proven investment process resistant to the usual emotions that typically affect long-term investment success. An investment of $250,000 by Investor “B” growing at an average rate of 10.90% during the same time period would be worth approximately $1,979,570 (before taxes) - a difference of $653,609. By using the proven investment process described in Chapter 4 of my book, Investor “B” has accumulated over $650,000 more than Investor “A”, providing him with a much higher retirement income.

By applying this one simple strategy, you will know that you are doing what you need to do in order to provide a financially secure future for you and your family no matter what happens. With the skills you learn in Securing a Retirement Income for Life, you can build more wealth no matter what the market is doing. How would you like to reduce the risk of your investing so you can relax while your portfolio grows? How would you like to consistently outperform the average investor and possibly become a millionaire or multimillionaire in less time than you ever imagined? The beauty of the strategies contained in this book is that they are not based on speculation. You are not trying to time the market. You are not trying to chase after the next hot tip or those investments that have been the most recent best performers. Instead, you should invest for the long-term. That's what America’s wealthiest investors do. The philosophy of my book allows you to avoid the costly mistakes most investors make saving you time and money. It virtually guarantees you greater investment success and greater wealth for your retirement.

Resources: For more information about developing a successful investment strategy, see Chapter 4 of my book Securing a Retirement Income for Life: Strategies for Managing, Protecting and Preserving Your Wealth.

What to do about a Stock Market Decline

2008-01-06T23:09:00.001-05:00

It happens every time there is a stock market decline. Many more people seek financial advice about how to manage, protect and preserve their wealth.

The fourth quarter of 2007 was certainly a major test of nerves for investors. Many people continue to worry about increased market volatility, the slowdown in the housing market and the credit markets. If you read Chapter 6 of my book, then you should know what to do about a decline in the market. You would know that market conditions and the economic environment change over time. For example, if you were following the market over the last quarter, beginning in October 2007, there was a steep sell off in the broad U.S. equity market. Rallies in November and December were unsustainable and overall, investor concerns about the housing market, tightening credit and a potential slowdown in consumer spending saw most U.S. equity indexes in negative territory for the quarter.

Despite these challenges, however, equity returns were reasonably positive for the year. Within the U.S. equity markets, large-cap stocks continued to outpace small-cap stocks. Growth stocks significantly outperformed value stocks. International markets outperformed the broad US equity markets led by the emerging markets. With the continued weakness in the housing market, real estate also suffered a setback in the fourth quarter of 2007. As for the bond market, yields continued to decline as the Federal Reserve Board reduced both the discount rate and Fed Funds Rate. Oil prices ended the quarter at record highs continuing an upward trend sparked by growing worldwide demand. Going forward into the first quarter of 2008, we hope that employment figures remain strong, consumer spending remains stable and inflation is contained.

Although we can never know when a stock market decline will occur, stock market volatility is an inevitable part of investing. That said, a market decline is the last thing that many people want to experience, especially those who are nearing retirement or newly retired. However, once you understand what market declines are — how often they occur, why they occur, how long they last and what you can do about them, you will know how to handle a market decline and more importantly, the crucial role a market decline can play in your long-term investment success. If you get frightened into making big changes in your portfolio based on your emotions, you will invariable end up with mediocre investment results.
A market decline provides an opportunity to reassess your long-term plans and your investment strategy. Now is the time to reassess the level of risk in your portfolio and review your long-term financial objectives. If you are overly concerned about how a market decline could affect your investment portfolio, the first thing you should do is sit down with your financial advisor to review your investment goals, time horizon, risk tolerance and financial circumstances. How has your financial situation changed since the last time you talked to your financial advisor?

Resources: For more information about what to do about a market decline when there are changes in market conditions and the economic environment, see Chapter 6 of my book Securing a Retirement Income for Life: Strategies for Managing, Protecting and Preserving Your Wealth.

Happy Holidays

2007-12-19T17:16:00.001-05:00

As the holidays approach and 2007 draws to a close, I wanted to take a minute to wish you a happy holiday season. If you've referred a friend, relative or colleague to my firm or my blog in the last 12 months, I'd also like to tell you how much I appreciate it – it's always an honor to receive a personal recommendation and it's a pleasure to help new clients reach their financial goals.

I hope that the past year has been a good one for you and your family. While it's hard to say what the future holds, a good financial plan should see you through both good times and bad. In order for the plan to work for you, however, it must be up to date and coordinated with other aspects of your financial picture, such as investments, retirement planning, insurance and tax issues. Have there been any changes in your life that might affect your personal financial situation? As you look ahead to 2008, do you see any other changes coming?

If you have any issues or areas of concern as you meet these new challenges, please feel free to contact me – it would be great to hear from you. I always welcome the opportunity to help people integrate all the pieces of the wealth management puzzle to arrive at a plan that accomplishes everything they want.

With my very best wishes for a happy holiday season and health and happiness in 2008,

Bill Griffith, Jr., CFP

Gift Giving and Your Financial Plan

2007-12-19T17:00:00.002-05:00

The end of the year is always a good time to be sure that any new purchases made during the year were properly titled. You should also complete a Financial Analysis Worksheet to update information about your assets, liabilities and net worth. If there has been any significant change in your assets and/or total net worth, you may want to discuss this situation further with your financial advisor, especially as the effective exemption amount increases over the years. The effective exemption amount for year 2008 is $2.0 million.

The end of the year is also a good time to be sure that all gifts made during the year have been properly documented. At our firm, we like to ensure that our clients comply with the adequate disclosure requirements by disclosing all completed gifts on Form 709, the U.S. Gift (and Generation-Skipping Transfer) Tax Return, and attachments thereto, to establish value for gift and estate tax purposes. This is particularly important for gifts of hard-to-value assets, including real estate and closely held business interests, whether the gift appears to be covered by the annual exclusion or not. If necessary, you can engage a qualified appraiser for these assets.

By adequately disclosing the gifts on the gift tax return or an attachment thereto, you will start running the three-year statute of limitations that prevents the IRS from later revaluing the gift for gift and estate tax purposes. If you do not adequately disclose the gift (per the Adequate Disclosure Rule), the IRS may attempt to revalue the gift at any time. Revaluation may result in you (or your heirs) paying significantly more gift and estate tax.

You should discuss all gifts made during the year with your tax preparer who can also tell you if there could be transfer tax valuation implications if gifted property, such as business interests or real estate, have not been reported or adequately disclosed over the years.

Based on your current gross estate plus adjusted taxable gifts, your advisor can project what your children may be required to pay with regard to transfer taxes. You should know whether gift tax returns were ever filed for substantial gifts (more than the annual exclusion amount) over the years as there may or may not be a limitation by the three-year statute of limitations in challenging the value of property transfers. If a transfer involving difficult to value assets, including business interests or real estate, has not been reported or adequately disclosed, the valuation may be disputed for gift or estate tax purposes.

The results of this evaluation will help you determine the potential tax consequences of your estate, your estate’s need for cash and whether this need will be met with insurance, rather than some other source of liquidity. Additionally, you will know if there could be transfer tax valuation implications if gifted property, such as business interests or real estate, have not been reported or adequately disclosed (per the Adequate Disclosure Rule).
Resources: For more information about the decision to gift or bequeath assets in light of the scheduled repeal of the estate tax as part of the Economic Growth and Tax Relief Act of 2001, see Chapter 9 of my book Securing a Retirement Income for Life: Strategies for Managing, Protecting and Preserving Your Wealth.

Making Your Own Investment Decisions

2007-10-08T14:58:00.002-04:00

Are you leaving the fate of your retirement nest egg to chance? Unfortunately, it can sometimes be difficult for some investors to know when it is too risky to make their own investment decisions. When the money at stake represents a lifetime of savings or a lump-sum pension payment, there is no room for error. This money is crucial for retirement and it cannot be recaptured.

The reality of successful money management is that it is a complicated and time-consuming process. There is always some element of uncertainty in investing. At our firm, we have a six-step investment process for helping our clients build a successful investment strategy. By working with a team of the industry’s most talented professionals, we have direct access to a level of capability rarely available to most investors.

Investing is serious business. Many of the people who can benefit the most from expert advice are those who are retired or near retirement. They need help making critical decisions about their retirement plans and IRAs. To help you understand how to achieve true long-term investment success, here are a few tips you can use to keep from being misled into investing in a product that is unsuitable for your needs.

1) Before you meet with a Certified Financial Planner practitioner or other financial professional, write down your investment goals. He or she will need to understand your current financial position. If you are ready to start taking distributions from your retirement plan, do you know how much you will need to maintain your standard of living? How much income will you need to meet your fixed living expenses? Through consultations with a financial professional, you will determine where you are in terms of risk and return. Using what is learned during this initial consultation about your goals, values, interests, relationships and assets, your investment advisor should be willing to craft a customized investment plan designed to accomplish everything that’s important to you. This plan serves as a detailed roadmap demonstrating exactly how you will move you’re your current situation to achieve all of your goals over time.

2) Going to the experts in certain instances will help you decide how to invest your savings, but you should first understand whom you are dealing with. There are a confusing number of different professionals who provide investment advice. For example, there are financial advisors, brokers, investment consultants, financial consultants and financial planners. Any firm or individual who receives compensation for providing advice about securities (“investment advice”) is required to register with the SEC (or at the state level) and is regulated under the Investment Advisers Act of 1940.

3) You should understand that a broker who calls himself or herself a “financial planner” does not necessarily have any extra training or expertise other than that of selling stocks and bonds. An Investment Advisor is a professional who makes decisions about asset allocation, developing the investment strategy, implementing the strategy with appropriate Investment Managers and monitoring the strategy on an ongoing basis. He or she should provide comprehensive and continuous investment advice and recommend the best investment for you. His or her compensation should not be dependent upon which products or assets you end up investing in. Sound investing requires careful consideration between those who are product driven, with more of an interest in selling you financial products, and an Investment Advisor who will take the time to help you explore your options if you receive a lump sum pension payment or an early retirement payout. A CFP practitioner and Investment Advisor will provide reliable recommendations regarding which Portfolio Strategists and Investment Managers will work best for you. If you choose to work with a CFP practitioner and Investment Advisor, make sure you are offered both parts of their Form ADV. They are required to give you Part II or a similar document setting forth their methods of compensation, education, areas of expertise, investment strategies and more.

4) Don't feel pressured to invest a lump sum pension payment or an early retirement payout too quickly. Avoid high-pressure sales tactics and invest only when you feel ready to do so.

5) Make sure you understand how your money will be invested. More than timing or the specific securities that you invest in, the way in which your assets are allocated (or diversified) and how they are rebalanced ultimately drives your returns. The way in which your assets are allocated in varying proportions is one of the most important factors that determines both the risk and return of your portfolio.

Are you are unsure if your current investments are both fully-diversified and well protected against volatility-or if they fit together in a well-defined portfolio?

Investing is serious business –after all, it is your future. You could opt to go it alone and make your own investment decisions. Or, you could choose to manage your investments by working with experts who are backed by a disciplined decision making process.

Television Interview about Securing a Retirement Income for Life

2007-09-17T22:40:00.002-04:00

I always enjoy talking to people about retirement planning. Here are some of the questions submitted to me during a recent television interview in Pittsburgh about Securing a Retirement Income for Life.

Q: Bill, what differentiates you from others who call themselves financial planners or financial advisors?
BILL: Well, I take time to listen and understand my clients – to address their total wealth management needs – such as retirement planning, estate planning and tax issues.

Anyone can call themselves a financial planner, but only a CFP^® practitioner has met the specific educational and testing requirements giving them a distinct advantage over other financial advisors due to their comprehensive approach to the financial planning process.

(The CFP^® certification marks are owned by the Certified Financial Planner Board of Standards, Inc. and are awarded to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.)

Q: A big part of what you do is to help people make important decisions about their retirement plan when they retire?
BILL: Right. When you retire or reach normal retirement age, you may be entitled to take a distribution from your retirement plan.

Q: What are my options after I leave my employer?
BILL: In general, you may be entitled to an eligible rollover or lump-sum distribution, periodic payments or discretionary distributions.

Rollover - A rollover is a direct or indirect transfer of your retirement assets to another retirement plan or IRA.
Lump-sum Distribution - A lump-sum distribution is a withdrawal of your entire balance in one taxable year.
Periodic Payments - Depending on the plan, you may be able to receive installment payments or payments spread out over your life expectancy.
Discretionary Distributions – Any withdrawal from your retirement plan that is not a lump sum or annuity payment.

Q: Do I need to change the way I invest during retirement?
BILL: Absolutely. In many ways, investing during retirement is more complicated.

Q: How so?
BILL: In retirement, there’s uncertainty about how long you’ll live, rate of return expectations and inflation. Your ability to tolerate risk is lessened – you have less time to recover from losses – so you may feel less secure about your income.

Q: You wrote a new book to address these issues.
BILL: Right.

Q: Where can I get a copy?
BILL: Amazon.com, through your local bookstore and online from leading booksellers.

Q: Tell me about it.
BILL: Sure. My book shows how to derive sufficient income to maintain your chosen lifestyle and to make sure your assets last for the rest of your life.

Q: To ensure a consistent and reliable flow of income for your lifetime, you must provide some safety for your principal.
BILL: Yes. But unfortunately, safety comes with a price – reduced growth potential and erosion of value due to inflation.

Safety at the expense of growth can be a critical mistake for some retirees

On the other hand, if you invest too heavily in growth investments, your risk is heightened – you may be forced to sell during a downturn in the market should you need more income.

Q: How then should you manage your investments during retirement?
BILL: The answer is different for everyone. You should tailor your plans to your own unique circumstances.

Job Opportunity – Financial Services Representative

2007-09-15T21:14:00.001-04:00

As a premiere wealth management firm, W.E. Griffith & Associates, LLC provides guidance to individuals, families, professionals, business owners and retirees in the areas of retirement solutions, insurance, investment services and estate needs.

We have projected the need for additional financial services representatives in the following areas:

Financial Services Exec/Financial Advisor

Director Client Relations

Supported by our network of specialists, you will have access to the resources and assistance you need to help clients build, manage and preserve their wealth.

If you are highly motivated, value your freedom and want to be financially rewarded for hard work and have the desire to impact people’s lives positively every day, then you may be a candidate we want to speak with about these opportunities.

As a Financial Services Exec/Financial Advisor, you will focus on identifying and cultivating prospective clients primarily through face-to-face meetings and networking with various sources. Through the financial planning process, you will help clients achieve their financial goals. We utilize a team approach to provide accurate, objective, strategic and timely advice in analyzing and planning a client's investment portfolio, estate plan, cash flow and retirement plan. The process entails detailed analysis of complex financial situations in order to propose the appropriate services to the client – helping them organize their financial affairs in a manner that minimizes income and estate taxes, ensuring their long-term financial security and independence, increasing the magnitude and longevity of their family's wealth. You should possess 3+ years of related experience, preferably in financial services. Emphasis is given to experience in developing successful relationships. Successful candidates must be able to deal with high net worth individuals, families, professionals, business owners and retirees - clients with investable assets of $500,000 or more. Undergraduate degree, CFP^®designee or equivalent experience is preferred.

As Director of Client Relations, you will take a personal approach that starts with a face-to-face meeting between you and a potential client. As Director of Client Relations, you will be responsible for managing the transition between a new client and the designated Financial Services Exec/Financial Advisor. In addition, you will enable development of junior associates. As we continue to grow, we are looking for individuals who are self-motivated and enjoy working independently. What distinguishes highly successful people is their ability to capitalize on the right opportunity when it presents itself. By becoming Director of Client Relations, you have the freedom to determine your own compensation and to redefine your future. To be considered for this position, you should have a bachelor’s degree from a four-year institution, have strong interpersonal skills, be self-motivated and have a history of personal success.

Each of these positions is a unique, exciting and financially rewarding opportunity for the right type of person — but it takes a dedicated individual to capitalize on the potential. If you have an interest in either of these positions, please contact us. Only qualified candidates will be contacted.

Devotion to our clients and their families is what is leading W.E. Griffith & Associates, LLC to success.

Heavy Order Volume is having a Temporary Effect on Delivery Time

2007-08-29T20:39:00.002-04:00

Have you recently ordered the book, Securing a Retirement Income for Life: Strategies for Managing, Protecting and Preserving Your Wealth (Griffith, 2006, ISBN 0-9785506-0-9) through your local bookstore or online from leading booksellers?

We understand that booksellers are currently experiencing very heavy order volume which could be due to the recent market volatility. Market volatility can give many people a reason to question the validity of investing in stocks. The short term pain of seeing investment portfolios drop brings back memories of another market meltdown, similar to what many people may have experienced in the past.

All investors ponder the ramifications of a steep market decline. They examine the investment advice they are receiving most often during market downdrafts. However, those who have read Securing a Retirement Income for Life know and understand the ebb and flow of the markets. This is why this book is so critically important. People who read the book are more aware of market volatility and all of the other things that are likely to happen. They are undoubtedly better positioned for the future.

This peak in book orders is having a temporary effect on delivery time. We apologize for any inconvenience that potential shipment delays may cause.

If your book order is of an urgent nature, please contact us for an up-to-date estimate on when new book orders are estimated to ship. For more information, please call 724-228-3440.