INDIANAPOLIS– The coronavirus pandemic has spared very few in its impact in 2020. One in four baby boomers say they are delaying retirement due to the uncertainty surrounding their investment portfolio. Entering their final stage of life without a solid financial plan is unnerving for those nearing retirement. Independent financial planning advisor Mike Reeves of Strategic Wealth Designers says building a robust, safe financial plan is imperative to navigate the recession that investors are facing.
“Unfortunately, right now a lot of people are flying a plane without landing gear. Their investments are a hodge-podge of assets accumulated of 20 or 30 years but their really isn’t a sound financial planning strategy in place,” Reeves says. “We see clients all the time who come in with a bunch of statements but they really don’t know if their investments are working together and what kind of safety nets are in place to protect against the huge crash like we saw in early March.”
For one in four baby boomers to feel like they must push off retirement, typically means they haven’t worked with a financial professional or the advice they have been given has not protected their assets in a manner that gives them a peace of mind to be able to retire. Many are concerned that not only are their investments volatile but having a full Social Security benefit will not be available to them either. Reeves says build a financial plan that makes Social Security an add-on bonus and not a significant need for everyday life.
“Over 2.7 million people search Social Security every month in the United States on the internet. They is an extreme interest in Social Security and how to tax advantage of it. Everyone has to understand, Social Security was not designed as a retirement plan,” Reeves says. “It’s a great additional piece of an investment portfolio but it has to act in a supporting role and not as the main character. Build your investment portfolio by putting back at least 10% of what you make every month, take advantage of company matches in your 401K, and build a robust financial plan that will endure every worst-case scenario that could arise, just like what has happened in 2020.”