Saving Your Retirement

Saving Your Retirement Ken Dolan: Unless you’re under a rock and don’t read the newspapers, you know that more than two trillion dollars has been lost in qualified retirement plans, Daria. And an awful a lot of people from our radio show here on Dolans.com, are really petrified that they’re retirement dream of financial security, maybe not driving around in a Maserati or private jet, but they’re private. They’re retirement dream of a golden retirement is seriously being jeopardize right now, and their days and they’re confused. We need to help them. Daria Dolan: And if you’re in retirement, then you better plan on an income strategy going forward that doesn’t involve the use of the stock market. Ken Dolan: I like that, I like that. Too skitterish. Daria Dolan: Because people in retirement already do not have time until this rights it self and the emotions are out of the Wall Street crowd again and things get back to normal. And you know, I don’t want to scare anybody but if you look back to the 1930’s, it took investors from the crash of 29, 25 years to get whole again. Seniors in the retirement don’t have 25 years necessarily to waive that out. Ken Dolan: Now what you’re going to do was cut back. It’s easy for us to say but I’m going to tell you, it works. Cut back spending and go on the sidelines, yes, we could take a lot of heat in the press about talking, about things that are really guaranteed like CDs. No, CDs are not going to get you an incredible return. On the other hand, they will be a buying, enormous buying opportunity. And we’d to like see you have some cash when that comes around. So conserve it. Look at the one and two years CDs, four percent, not great, but safe. If you’re lucky enough to be in a bracket where tax-free meet us but bonds make some sense. If not tax-free, you may want to look at some Triple A Corporate laws, you have to be careful of corporate credits nowadays. Daria Dolan: Exactly, very, very careful. Ken Dolan: Triple A are better. Money market accounts taxable or tax free, not horrible rates. Some around 3% and don’t forget in some of the FD’s if you percentage are higher and some of them are FDIC insurance not great alternatives, but safe ones. Daria Dolan: And the other thing in this because I’ve heard it, I can’t tell you how many times I’m talking to friends who have been moaning how much their portfolio had gone down in value. And as if long ago is a month ago. I said to a friend of mine, a woman who’s widowed, she said, “I’m so nervous I can’t stand this anymore.” I said, “Get out of the market, do it now.” She said, “I can’t because then they’re really are loses. Right now it’s just paper loses.” I said to her a month ago, “It’s going to get worse before it gets better.” She held it off when she finally got the gumption up to get rid of that portfolio. She had lost a million dollar, she probably could’ve stop the blow a lot sooner than that had she taken my advice a month earlier. Ken Dolan: I guess we’d rather conservative. You also may want to take a look at it, take a little work, better go to TreasuryDirect.com, TreasuryDirect.com and we got more information here on Treasure Instruments etcetera on dolans.com. But you may want to look at tips which are Treasury Inflation protected securities. We are betting on the fact that inflation will leave, will both continue and go up, will it or not, it’s for you to decide. It’s for long term investors, but there’s one way to in fact benefit if in fact we stay inflationary. Clearly, there are no credit problems that are backed by the US government. You could loose money if in fact we’re going to deflation. It is worth taking to look at. It’s an option nobody talks about. Just take a peek at it. Daria Dolan: And the unfortunate thing is although with the trashing of the dollar that will ensue, you cannot make all these money out of scratch with nothing to back it up. And not in gender inflation in the economy, but never forget who the inflation keeper is, the same people that issued the inflation bonds. Ken Dolan: The Dolan bottom line, safety first. We’ll take the heat for you, safety first.