Baby Boomers to Financial Advisers: We Need Income not Wealth

According to this article, financial advisers and wealth managers are realizing that they are in the early stages of a huge paradigm shift. Baby boomers are less concerned about growing their retirement nest egg and more concerned about preserving what they have. More particularly, they want to be told what they can do to avoid outliving their money. If their adviser doesn’t have a good plan for that, the client will find someone else who does.

No doubt some advisers will move their clients into annuities. If so, let’s at least hope they will be indexed to inflation. Otherwise, they may not outlive their income, but they surely can outlive their spending power. Inflation is a deadly sure killer of spending power.

You don’t need a financial adviser to tell you how to construct a plan that will provide retirement income that is both guaranteed and inflation protected. Frankly, there aren’t a lot of options for providing that income. The most affordable option is an income plan constructed from TIPS and I-Bonds. That’s the direction I’m heading. How about you?

2 thoughts on “Baby Boomers to Financial Advisers: We Need Income not Wealth

  1. Hi. I applaud you for having the guts to buck the tide of the stock-investing religion. There aren’t many of us who are willing to do that. Say anything negative about the market, and people assume you don’t have the sophistication to understand. The sad thing is, it is THEY who don’t understand.

    I’m a registered investment advisor, and I assure you, I know the market very well. If someone is willing to do the research, as you have, they will come to understand what we have… the market is a very dangerous place to put your life savings.

    I have to say, though, a good planner (and I emphasize “good,” NOT a stockbroker) can set someone up with a better income plan than they can get on their own, 98% of the time.

    Keep up the good work.

    Marc

  2. Marc, I agree with you a 100%. I think it also took guts to be a part of that industry and admit something like that about the markets. My thoughts, unless you are a computerized trader siphoning(sp?) off a hundreth of a percent on millions of trades each week, you are essentially gambling on the phsycology of the markets. Wall street banks on the unsophisticated investor to grease the oils of the machine. They suck the life out of online brokerage accounts and laugh in our face. I’m sure they have analysts who’s all there job is to do is figure out how to capatilzie on the indiotic trade consumers make. They don’t even need to wait for a “flash crash” to trigger the individual invesotors stop loses to scoop up your hard earned money. Rigged.

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