Stan Molotsky, president and CEO of SHM Financial, has been in the business since 1958 and knows more than a thing or two about protecting your assets through every stage of this unpredictable thing we call life.
“In today’s world, as erratic and exciting as it is, you have to be prepared for the unexpected; especially in your asset preservation. We have a new administration, we have the probability of interest rates being increased for the first time in a long, long time and the direction of interest rates will probably reverse the downward trend because they can’t go any further downward,” says Molotsky. “And at that point, how you protect yourself in relation to your asset picture is very critical today going forward.”
Protection of assets
The goal is to constantly be moving forward—or at least sideways—and not backwards, especially as you get close to retirement and the first year or two into retirement. Molotsky says these five steps will put you and your family on the right track when it comes to your financial health:
•Look at your assets all the time
•Identify your spending patterns
•Determine what you want to do with your assets
•Make adjustments based off your patterns and wants
•Calculate the amount of risk you want to take on those assets
Pre-retirement exit strategies
Molotsky tells us that as you get close to retirement, the one thing you can’t afford is a decline in the asset base that you have as you prepare for the first year or two of retirement. “It’s critical when you get closer to retirement that you make sure that wherever your assets are, that they’re in things that, the majority of, will not deteriorate in value,” says Molotsky.
These four fixed guaranteed kinds of things are where Molotsky says people who are preparing for retirement should rely on more than the stock market, especially if you can’t afford the risk of a declining stock market:
• Certificates of deposit
• Savings accounts
• Fixed annuity options
• Other assets that are predictable
Post-retirement exit strategies
Assessing your assets post-retirement is even more critical because once you are in retirement, the probability of additional income coming in is shut down—unless you were to do some part-time work or you hit the lottery. “Once you have retired, that block of money is it,” says Molotsky. “That has to carry you to age 110, or whatever age point you want that money to carry you to. You have to prepare for that money to do those things that you want it to do.”
Molotsky says it is crucial to set aside money for the events that could take place at any given time and it’s even more important to factor in those events taking place during your retirement. Here are just a few of those unexpected events to think about:
• Natural tragedies like hurricanes, tornadoes, etc.
• Major health issues either to yourself or your family
• Family emergencies that require a large amount of money
Published (and copyrighted) in Suburban Family Magazine, Volume 8, Issue 10 (December, 2017).
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