Many people think assumptions are a big part of my business, but in reality, the facts are what matter most. There are a number of assumptions people have in mind when thinking about retirement planning and these assumptions can often de-rail a retirement plan. Let’s look at a few common assumptions:
“I can earn income for as long as I wish to.”
Many things that are out of our control can change this assumption such as:
A change in your company may down-size you out of a job.
A family member’s health decline may require your help
Your own health may change in an adverse way.
“Inflation will always stay low.”
As we are seeing right now, rates can increase. Monetary policy from the Federal Reserve is constantly under scrutiny and ever changing. We have been hearing of the potential for multiple rate increases this year. A portfolio review will be necessary to see what impact interest rate increases will have on your retirement.

“I will always be healthy.”
As I mentioned in the first assumption, health issues have a way of de-railing the best laid plans. An illness, accident, or injury happening to yourself or a loved one can take a lot of time and money. You may have Long Term Care Insurance to cover yourself and your spouse, but what about a parent, child, or grandchild that is in need? Take it from me, a prolonged illness from a parent takes a financial, physical, and emotional toll that can be greater than you can imagine.

Please, don’t get caught on the wrong side of an assumption.

Disclosures:http://www.hechteffect.net/?page_id=31