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One Retirement Myth To Be Aware Of Today

I love talking retirement and rightfully so, as I have been working with clients and their portfolios for nearly 20 years. One thing that was hard for me to understand as a young life insurance agent was why I had to know everything about a client before I started writing their life policy. My manager would always tell me that you have to do confidential questionnaires. My thought as a young agent was why when they wanted insurance, and I want to sell it to them. This type of approach was a win-win for me trying to get a commission. As a veteran in the business for more than 35 years at the time, he said you young kids just do not get it. How do you go into a doctor and tell them your elbow hurt because you bruised it, and they give you some cream and send you on your way, only to discover that you have a fractured bone chip? Now that I am older and around the same age, he was when he started sharing his sage wisdom with me, I truly understand what he was talking about now that I am older.

One Retirement Myth To Be Aware Of Today is: you can't put a retirement plan together using some random online tool. Do not get me wrong, I think there are some excellent tools out there, but most of the tools I have seen or experimented with online do not ask the real questions. The thinking questions. They mostly ask quantitative (numbers) questions, and they should. Tools asking a question like how much do you want to have in retirement is a good question. Do some tools even ask questions like how much do you have in your 401k or IRA account today? Some tools are designed to probe or find out your assets in exchange for free access to their free tools. The myth is they do not know intimately know you, as they mostly do not ask qualitative (how do you feel about this or that) questions. One big problem, which is overlooked on most of those Robo tools, is the questions about moving in retirement. That is the most overlooked qualitative question never asked in 75% of the tools I have tested online. Another issue is special needs type questions or is anyone else depending on you for support.

I have nothing against these types of tools as they are what we called in grad school, suitable for a quick acid test (quick calculation type of formula). None of the tools asked about hobbies or leaving a legacy or bequest (leaving money to a library or non-profit organizations) They don’t ask if you plan to travel to see grandkids on the east or west coast. Be aware of this myth that quick online entry tools as they do not know you as they should know you. An unbiased planner, advisor, or online Robo tool should know you, just like my old manager told me I should know all of my clients as a young agent nearly 20 years ago.  I am glad we consider both quantitative and qualitative questions in our fact-gathering about you when we put your retirement plans together at My old manager would approve and be very proud of how I listened to him as I still hear his voice today. 


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