In a previous article, I discussed the retirement income challenges created by longevity risk. Today, I want to talk about a common strategy for addressing it: the Three Percent Rule. I’ll share what came before it, how it came to be popularized, and where it may fall short — including four significant shortcomings you should understand before relying on it as your primary withdrawal strategy. As I always suggest, I hope you’ll take notes as you read on any questions that come to mind. You can always reach out to me to schedule a discussion if you’d like to […]
We are all living in — and retiring in — a risk-rich environment. Not only do you need to worry about tax rate increases and longevity risk, both of which I’ve written about previously, but there are other very real dangers to your long-term retirement outlook, too. In this article, I’ll review three of them: withdrawal rate risk, long-term care risk, and inflation risk. As you read, take notes on questions you may have, and please feel free to reach out to me to schedule a discussion if you’d like to learn more about how I can help you […]
In my last article — part one of this two-part series — I shared an excerpt from David McKnight’s powerful book, Tax-Free Income for Life. In it, David detailed the first great retirement risk we’re all up against, which is tax rate risk. If you haven’t read that article yet, I encourage you to start there. Today, I’m sharing another excerpt from David as he explains the second great retirement risk — longevity risk. It’s my mission to educate you about this risk, but also to inspire you to take control of your financial future and prepare for the […]
If you’ve read any of my previous articles, you know it’s my mission to educate you about the very real risks threatening to undermine your retirement outlook. Of course, I also want to empower you now, in the present, to take control of your money and prepare for what’s to come. This article is no different, as I’ll be sharing more about a threat lurking in your portfolio — sequence-of-return risk — and the risk multiplier that makes it even more dangerous. As you read, take notes on questions you may have, and please feel free to reach out […]
The following content is adapted from the book Tax-Free Income for Life by David McKnight. If you’ve been reading the Hanson Wealth Management blog for a while, you know that we have previously discussed the advantages of the fixed indexed annuity (FIA). I have also shared two significant disadvantages: tax rate risk and Social Security taxation. Now, I want to look at a potential option for addressing these two risks, which can help you work toward aligning your tax-free stars.
My goal as a financial advisor is to give each of my clients a step-by-step plan for a well-prepared retirement. In order to do that, I have to help them avoid the two greatest retirement risks. The truth is that roadblocks loom large in retirement, and too many people find themselves living in fear of outliving their money. This is the reason I have dedicated my professional life to tax-free retirement planning through the philosophy of my mentor, David McKnight, a widely recognized voice on tax-free retirement and author of the eye-opening book The Power of Zero. Below, I […]
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