Retirement planning is not something you can forecast and then reconstructed when financial assumptions fail.  Unfortunately, many people often underestimate the amount of money needed in retirement. As a result, many retirees are forced to adjust their lifestyle to meet budgetary constraints. To avert these unwanted lifestyle changes in retirement; here are a few practices to consider (provided by our Best Financial Advisors):

• Try to save at least 10-15% of annual income. 
• Prepare to spend 70-80% of pre-retirement income during retirement.
• Working part-time, during retirement, to supplement living expenses.
• Recognize all income sources (Savings, Social Security, Retirement Plan Accounts, and Business Income) when calculating financial assumptions.
• Reduce household expenses as much as possible before retirement.

 
Often these items are overlooked since most investors have not established a comprehensive financial plan.

Using the services of a qualified financial advisor (to help you identify the strengths and weaknesses in your financial picture) will ensure you can retire comfortably too!

NOTE: Experts recommend contacting 2-3 financial advisory firms, so that one may compare/contrast each firm, thus making the best-qualified choice.

Warren Buffet Playing The Derivatives Game!

Famed financial investor Warren Buffet who operates Berkshire Hathaway Inc. has struggled to comply with SEC financial disclosure requirements.

The SEC has demanded more information about recent write-downs.  Currently, Berkshire Hathaway Inc. operates over 80 companies collectively holding more than $136 billion in stocks, bonds and cash.  Berkshire ended June with $8.23 billion of unrealized losses and $37.48 billion of potential liabilities on equity index contracts.

Is your current financial advisor conducting similar practices?  It may be time to ask for the disclosure you have neglected to ask for in the past.

Warren Buffet expects these contracts to rebound and says these contracts are unlike the derivatives that helped create the recent global financial meltdown.  Is the world’s most famous financial straight-shooter – who is uniquely positioned to lobby for better public policy — spending his substantial political capital defending his own holdings?  Time will tell…

 
NOTE: Experts recommend contacting 2-3 financial advisory firms, so that one may compare/contrast each firm, thus making the best-qualified choice.

What Should You Look For In a Financial Advisor or Financial Planner?

* Ask if they have been subject to any disciplinary actions or have received any client complaints in the past.
* Ask for a copy of all compensation, fee and/or commission schedules.
* Ask for references, specifically from clients who have similar goals as yours.
* Inquire about the financial advisor’s experience, education, professional affiliations, credentials and general background.
* Make sure the financial advisor is properly licensed, bonded and insured in the states where they do business.
* Review the advisor’s methodology prior to committing your investment.
* Is the financial advisor using an institution to “clear” or execute trades?  If so, become familiar with that institution and double-check the fees associated with this activity.  There may be hefty ”commissions” involved.

NOTE: Some experts recommend contacting 2-3 financial advisory firms, so that one may compare/contrast each firm, thus making the best-qualified choice.

What Is Fiduciary Duty?  A fiduciary duty is a legal or ethical relationship of confidence or trust between two or more parties, most commonly a fiduciary or trustee and a principal or beneficiary (Wikipedia).