PANEL ONE: EMERGENCY FUNDS AND RISK
01.Core Concepts
MANAGEMENT OTHER RISKS - EXAMPLE Roger, age 78, had a knock on his door one evening. Roger answered the door to find the FBI at his doorstep. The Agent explained to Roger that his IP address had been used to breach a secured server and if he would grant them access to go through his computer, they could find out what happened and if they found Roger innocent, they would not have to take further steps against him. Roger eagerly agreed to clear his name and help the FBI arrest whomever committed the crime using his information. Roger provided the Agent with his passwords and the Agent said he had all he needed to clear Roger’s name 20 minutes later. A few weeks went by, and Roger was sitting with his financial planner when the planner asked him about his big expenditure. Roger, not having spent any money didn’t know what the planner was asking about. Roger’s accounts had all been wiped out and had a zero balance. His planner asked a lot of questions and Roger finally tied the timing to the Agent going through his computer weeks ago. As Roger recalled the events, he realized he had been so flustered he never asked for identification from the Agent. PANEL TWO: DEBT MANAGEMENT AND BUDGETING ANALYZING ALTERNATIVES FOR DEBT MANAGEMENT (1 of 2) • Next stage of planning involves analyzing alternatives for debt management and developing the retirement spending plan (budgeting). • Retirees can experience greater peace of mind knowing they are debt free in retirement. • Paying off a mortgage • Mortgages are considered “good debt” • Consider: • Rate of return on investments • Impact on cash flow (paying off, refinancing or purchasing) • Software can model different scenarios impact on the retirement plan.