You may have had your Advisor for a long time, and think of them as your friend. But, as a retiree, be wary of these advisor “lines”.
“You need to ride out all stock market volatility, you’re in it for the long haul”.” Since 2000, the stock market has suffered through two 50 percent losses, you can’t afford another one.
“Don’t worry about the volatility, you need to take the risk to get high returns.” The S&P 500 Index only increased by 2.85 percent per year from 2000 through 2018, a period of 19 years, before fees.
“You’re only paying about 1 percent in fees.” We find the average retiree, with an advisor, is paying 3 percent or higher in fees per year… and they don’t even know it.
“You will get an 8, 10, or 12 percent return because that’s what the stock market always averages.” Remember, from 2000 to 2018, the S&P 500 Index increased by 2.85 percent per year BEFORE FEES.
“Your portfolio is diversified, only 65 percent are in stock funds, it’s conservative or moderate.” We have found, through testing this type of portfolio of mutual funds, it would have lost between 30 and 40 percent in the 2008 Financial Crisis.
“You should defer taking income out of your assets until age 70 1/2.” You can spend your money better at 60 than you can at 70, and your income taxes are not going to skyrocket just because you access some of your assets for income on an annual basis.
If you have heard any of these statements from your advisor, they may be putting you in jeopardy, we can help. Call us today.
VIP Financial
402.547.0395
Wealth Management in Parker CO
Financial Planning