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Charles

Superb blog! I just found it, and will be back regularly. Very good stuff here.

Kent @ The Financial Philosopher

Thank-you, Charles, for the generous compliment! I hope to hear from you again...

Kent

Savvy Working Gal

There is a lot of buzz around the blogosphere lately about how much money is really needed in retirement. I read a statement (which I now can’t find) that financial representatives play on customer’s fears that they will run out of money to oversell them on financial products they don’t really need. I had a similar experience, when a rep I met as favor to a friend informed me thru her fancy charts and graphs I will run out of money at age 78. How could I avoid this? By buying insurance products. Once home, I looked at the assumptions she used in her model. One was that I would spend $65,000 a year. I think I could easily live on $40. My real financial planner talked me into using $50. Any thoughts on this?

Kent @ The Financial Philosopher

Savvy Working Gal:

Not knowing your complete financial picture, I will generalize:

Insurance products are notoriously poor investment vehicles. They can be good supplemental tools in some cases, such as tax deferred income.

Also, there are many advisers (or other so-called professionals) that provoke anxiety to sell products.

Also a generalization, advisers that are only paid by fees (not from commissions from selling products) have a foundation for altruism. Registered Investment Advisers (RIA's) also have a fiduciary responsibility to act in the best interest of clients -- not themselves...

In terms of "running out of money," too many financial plans assume retirees will not work in retirement. Personally, I believe some form of "work" is absolutely necessary, not from a financial perspective, but from an existential perspective: Meaning does not come from money -- it comes from energy derived from DOING something. I've seen too many people become depressed in the conventional retirement.

I'll have much more to say on this subject in future posts, but here's a link to a few that may help:

http://financialphilosopher.typepad.com/thefinancialphilosopher/2007/12/the-five-minute.html

http://financialphilosopher.typepad.com/thefinancialphilosopher/2008/02/enabling-opport.html

Thanks for the comment. I wish you the best...

Kent

Daddy Paul

"If we choose, we can live in a world of comforting illusion."
Great quote. great blog.

Kent @ The Financial Philosopher

DP:

Thanks for the positive remark. I hope to hear from you again...

Kent

Pension Advice

This is truly inspiring! I totally agree that what you perceive often times happen because the cosmic forces is helping you achieve that.

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About Kent Thune


  • Kent Thune is a wealth manager, a writer and a philosopher... Read More

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  • The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.