Jordan Mangaliman discusses the importance of building a retirement plan you can depend on
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-jordan-mangaliman-fiduciary-retirement-advisor-founder-of-goldline-wealth-management-discussing-building-a-retirement-plan-you-can-depend-on/
Jordan Mangaliman to discuss the critical topic of building a dependable retirement plan. Jordan emphasized the importance of crafting a retirement plan that is not just a cookie-cutter solution but one that is tailored to individual needs and goals.
We delved into the six major risks that retirees face:
- Longevity: The increasing likelihood of living longer necessitates proper income source planning and inflation protection.
- Mortality: The impact of a partner’s premature death on retirement income and the importance of planning for such an event.
- Liquidity: The need for accessible funds to cover unexpected expenses like medical emergencies or home repairs.
- Inflation: The long-term effect of inflation on purchasing power and the necessity of growing investments to combat it.
- Market Risk: The potential for market downturns to affect retirement savings, especially in the early years of retirement.
- Taxes: The likelihood of future tax increases and the importance of tax planning, including strategies like Roth conversions.
Jordan also highlighted the importance of long-term care planning, noting that 70% of Americans will need long-term care at some point. He discussed various ways to fund long-term care, including self-insurance, traditional long-term care policies, and the increasingly popular 7702 plans that combine life insurance with long-term care benefits.
Retirement is often viewed as the culmination of a lifetime of hard work, a time to relax and enjoy the fruits of one’s labor. However, it is also a significant transition that comes with its own set of challenges and risks. As discussed in a recent podcast, crafting a robust retirement plan involves addressing six major risks that can impact financial security and overall quality of life during retirement. Understanding and planning for these risks is essential for anyone looking to navigate this complex phase of life successfully.
The first risk to consider is longevity. Advances in healthcare and living standards mean that people are living longer than ever before. For a married couple at age 60, there is a 43% chance that at least one partner will live to age 95. This statistic underscores the necessity for retirement plans to accommodate potentially lengthy lifespans. A well-structured plan must include strategies for generating sustainable income over an extended period, ensuring that retirees do not outlive their savings. This can involve a combination of income sources, such as Social Security, pensions, rental income, and investments designed to generate ongoing returns.
The second risk is mortality, specifically the premature death of a spouse or partner. The financial implications of losing a partner can be profound, particularly concerning retirement income. Typically, when one spouse passes away, the surviving partner loses at least one Social Security check, potentially leading to a significant decrease in household income. Hence, it is crucial to plan for this eventuality by considering life insurance, survivor benefits, and how to adjust the retirement budget to accommodate the loss of income.
Liquidity represents the third risk, which is often overlooked in retirement planning. Unexpected expenses can arise at any time—be it home repairs, medical emergencies, or the need for long-term care. The podcast highlighted that long-term care can cost between $8,000 to $10,000 a month, which can add up to a staggering half a million dollars over several years. To address liquidity needs, retirees should ensure that a portion of their investments is easily accessible without incurring penalties or significant losses, allowing them to respond to emergencies without derailing their long-term financial plans.
Inflation is the fourth risk that retirees must contend with. The purchasing power of money decreases over time due to inflation, which has averaged around 3.6% over the last century but can spike unexpectedly, as seen during periods of economic upheaval. To combat inflation, retirees should consider growth-oriented investments for funds not immediately needed for income. This strategy helps ensure that their purchasing power is preserved, allowing them to maintain their standard of living throughout retirement.
Market risk is the fifth risk, which is particularly pertinent for those relying on investments for retirement income. Many retirees enter retirement with substantial investments in stocks and bonds, but the risk associated with market volatility can be daunting. The podcast emphasized the importance of understanding sequence of returns risk—where a market downturn early in retirement can severely affect the sustainability of a portfolio. Retirees must evaluate their risk tolerance and adjust their investment strategies accordingly, potentially shifting to more conservative allocations to protect their principal.
Finally, the sixth risk involves the overall economic environment and market conditions. As retirees assess their financial positions, they must consider whether the market is undervalued, fairly priced, or overvalued. This assessment can influence investment decisions and the timing of withdrawals, as well as the need to rebalance portfolios to mitigate risk.
In conclusion, building a dependable retirement plan requires a concerted effort characterized by careful planning, risk assessment, and ongoing management. As highlighted in the podcast discussion, the importance of laying a solid foundation cannot be overstated. By proactively addressing potential risks and aligning financial strategies with personal goals, individuals can create a retirement plan that not only withstands the test of time but also provides peace of mind. Retirement should be a time of enjoyment and fulfillment, and with the right planning, it can be a reality for everyone.
Jordan shared: “I help retirees build a clear retirement plan, manage their wealth wisely, reduce taxes, secure reliable income, and create a lasting legacy for their families.”
About Jordan Mangaliman
Jordan is a second-generation Fiduciary Retirement Advisor and has dedicated the last 15 years to educating his clients on how to build and protect the assets they have worked so hard to accumulate. His family has now been serving clients for over 45 years and has helped over 1,200 families across the nation, spanning from Hawaii to New York. His diverse base of clients entrust him with their financial well-being, and he proudly owns a record free of any consumer complaints. This is a direct result of the core values at GoldLine Wealth Management. This expansive industry experience has allowed their team to provide sound advice to their clients during both bull and bear / recession markets.
He earned his Bachelor’s Degree in Finance at UC Riverside. Personal finance, market trends, investment strategy, and wealth preservation is what drives Jordan’s hunger for knowledge which he shares with his clients and incorporates regularly into his practice. Jordan’s family has been a pioneer in the Christian-Catholic Ministries in Los Angeles for over 35 years. At a young age he was involved with his church’s ministry which planted the seed for his leadership positions today.
“As a Fiduciary Advisor, our clients trust us because we have a track record of putting their needs first at all times. My job is to foster a relationship of trust, both legally and ethically. Our expansive industry knowledge, experience during up and down markets, research, and world-class service is what forges our lifelong relationships with our clients. Our tenets of full transparency and a high level of communication are the pillars of trust that we build with our clients and the multitude of financial institutions we work with. Many of our clients have become like family and we could not be more grateful for them.”
Learn more: https://goldlinewealthmanagement.com/
Recent News and Interviews
- Jordan Mangaliman discussed the Transition into Retirement https://authoritypresswire.com/jordan-mangaliman-fiduciary-retirement-advisor-founder-of-goldline-wealth-management-at-the-influential-entrepreneurs-podcast-discussing-the-transition-into-retirement/