Author Topic: Email from my former "Financial Advisor"  (Read 5763 times)

Honest Abe

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Email from my former "Financial Advisor"
« on: September 07, 2013, 07:39:49 AM »
This guy is used my nearly every teacher in my old school district. He only sells high-cost funds and tries to push people into an "elite" service where people pay a higher % for better service. Here's an email I just received from him:

Quote
How Much Money Will You Need In Retirement?

 Have you underestimated?


What is enough? If youíre considering retiring in the near future, youíve probably heard or read that you need about 70% of your end salary to live comfortably in retirement. This estimate is frequently repeated Ö but that doesnít mean it is true for everyone. It may not be true for you. Consider the following factors:

Health. Most of us will face a major health problem at some point in our lives. Think, for a moment, about the costs of prescription medicines, and recurring treatment for lingering ailments. These costs can really take a bite out of retirement income, even with a great health care plan.

Heredity. If you come from a family where people frequently live into their 80s and 90s, you may live as long or longer. Imagine retiring at 55 and living to 95 or 100. You would need 40-45 years of steady retirement income.

Portfolio. Many people retire with investment portfolios they havenít reviewed in years, with asset allocations that may no longer be appropriate. New retirees sometimes carry too much risk in their portfolios, with the outcome being that the retirement income from their investments fluctuates wildly with the vagaries of the market. Other retirees are super-conservative investors: their portfolios are so risk-averse that they canít earn enough to keep up with even moderate inflation, and over time, they find they have less and less purchasing power.

Spending habits. Do you only use 70% of your salary? Probably not. If youíre like many Americans, you probably spend 90% or 95% of it. Will your spending habits change drastically once you retire? Again, probably not.

Will you have enough? When it comes to retirement income, a casual assumption may prove to be woefully inaccurate. You wonít learn how much retirement income youíll need by reading this article. Consider meeting with a qualified financial professional who can help estimate your lifestyle needs and short-term and long-term expenses.


Mrs3F

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Re: Email from my former "Financial Advisor"
« Reply #1 on: September 07, 2013, 08:26:26 AM »
Sadly, that spending percentage is probably accurate for a significant segment of the population.

AJDZee

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Re: Email from my former "Financial Advisor"
« Reply #2 on: September 07, 2013, 08:27:02 AM »
haha great post, thanks for sharing!

I especially like his view point of

'Got bad health? YOU'RE SCREWED!'
'Got good genes? YOU'RE SCREWED!'

Kind of reminds me of a pushy insurance salesman coming to your door to sell you volcano insurance.

Zamboni

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Re: Email from my former "Financial Advisor"
« Reply #3 on: September 07, 2013, 08:31:32 AM »
'Got bad health? YOU'RE SCREWED!'
'Got good genes? YOU'RE SCREWED!'

That part is pretty classic.

Unfortunately I used this guy (or someone just like him) for about 10 years thinking I was being responsible by hiring an "expert."  However, if you can get the book Millionaire Teacher to cycle through your friends in that district, then they will realize that he has his hands in their pockets, and they are probably smarter than he is anyway.  Even if they don't use the strategy in the book, it does have a really great warning section about these guys.

cats

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Re: Email from my former "Financial Advisor"
« Reply #4 on: September 07, 2013, 10:10:02 AM »
This is why I'm always wary of signing up for the "retirement planning" workshops my employer is always setting up :)

I wouldn't even know where to spend 90-95% of my income...

Cheddar Stacker

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Re: Email from my former "Financial Advisor"
« Reply #5 on: September 11, 2013, 10:56:53 AM »
Sadly, I would bet the average spending percentage is above 100%, otherwise we wouldn't hear about alarming credit card debt stories on a regular basis.

I can't stand "scare" sales tactics. Good job moving on.

FunkyStickman

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Re: Email from my former "Financial Advisor"
« Reply #6 on: September 11, 2013, 11:10:00 AM »
Sadly, I would bet the average spending percentage is above 100%, otherwise we wouldn't hear about alarming credit card debt stories on a regular basis.

I can't stand "scare" sales tactics. Good job moving on.

Agreed. "Scare" tactics are an immediate "no" from me, doesn't matter what it is. Oldest sales trick in the book.

AJDZee

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Re: Email from my former "Financial Advisor"
« Reply #7 on: September 11, 2013, 11:22:03 AM »
This is why I'm always wary of signing up for the "retirement planning" workshops my employer is always setting up :)

I just got an email from my company yesterday about a full-day retirement workshop they do every year that's very popular among employees, and spouses/partner are encouraged to come too.

...buuuut you have to be 50 years or older to attend because there is limited space. haha
sooooo I won't be able to comment on the material for another 20 years from...oh wait... I'll I've been retired by then.

ender

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Re: Email from my former "Financial Advisor"
« Reply #8 on: September 11, 2013, 06:14:55 PM »
You should respond back, "I'll be ok, social security and welfare will take care of me, thanks though!!!!!!"