For individual investors who pay close attention to their financial affairs, planning for a time when they can no longer make sound decisions may seem like a remote possibility and an unnecessary step. However, these same investors may have the most to lose if they fail to properly plan for this possibility.
As older Americans move into retirement, they face many decisions. Retirement income planning (making a plan to coordinate these decisions to ensure enough income to pay the bills and prepare for uncertainty) is critically important. But Americans may not be as knowledgeable as they should be to face these decisions.
Getting clients focused directly on their need for life insurance is often difficult. Life insurance sales are often tied to discussions of other financial goals, like selling a business through a buy-sell agreement or as a source of funding for estate taxes.
Why should retirees care about the Retirement Income Certified Professional® (RICP®) designation? Every day, more than 10,000 baby boomers hit retirement age. Many Americans expect to live a long time in retirement, but most don't have pensions to rely on the way their parents did.
Allen McLellan, a retired financial adviser and faculty member at The American College, tells the story of one of his former clients, who was not financially ready to retire but desperate to get out of a workplace because she was sick of her bosses and office politics.
Because nearly two-thirds of retirees receive more than half of their income from Social Security, there can be no doubt that choosing when to claim benefits is one of the most important financial planning decisions a client can make. To help retirees make better decisions, here are 10 key points that everyone should know when deciding whether or not to begin claiming Social Security.