Your Best Retirement Planning Moves--5, 10, and 20 Years Out

Written by Tim Decker.

happyinretirementNearly 40 percent of Americans have given little or no thought to planning for retirement.1 For many, the reason why planning is so hard is that they don't know where to start or where to go for help.

No matter how far or near retirement is for you, there are smart moves you can make to help put you in a better position for your financial future.


Solid Portfolio Lets You Avoid Market Blips

Written by Tim Decker, AIF®. Posted in The Patriot News

PillarsQ: The markets didn't do well in 2015, so I want to know: Is there anything I can do now to get better returns from my portfolio?

A : Not necessarily – if you've set up your portfolio correctly. There will be many down periods in the market. But historically, there have been substantially more up years than down. This is why some long-term investors have been handsomely rewarded.

For many investors, it's tough to do nothing after looking at statements from 2015, reflecting the first down year for some major indexes since 2008, when the S& P 500 dropped about 40 percent. Last year, the Dow Jones Industrial Average, a basket of 30 large companies, declined 2.2 percent, while the S& P 500 declined nearly 1 percent. And on Jan. 4, the first trading day of 2016, the Dow dropped 1.6 percent.
If this continues, it could signal a pause in the long-term upward trend for stocks, meaning opportunities for investors who understand that lower prices are a godsend for buyers.

History has demonstrated that if you're patient, over time you can reap substantial rewards from financial markets, assuming that you've invested wisely. Of course, many investors don't because they lack a well-thought-out asset allocation – a blueprint assigning different proportions of their money to different types of investments. The idea is to lessen the risk of damage from one type of investment, such as stocks, by holding others that are unlikely to decline at the same time. These other investments, such as government bonds, can provide substantial peace of mind during stock market declines.

People who have invested this way can sit back when the stock market undergoes setbacks. Yet sitting idly and waiting for brighter days to come isn't easy for many because most people are wired to take action to solve problems.

This instinct is only human. However, investing successfully for the long term (the only way to go) most often means doing nothing when others are falling victim to their emotions and doing substantial harm to their portfolios. Simply stated, don't just do something, sit there. It sounds illogical but isn't because that's usually what you should do – if you've invested properly.

The smart move to make during most down periods is the one you should have already made: building a solid asset allocation that reflects your realistic goals and risk tolerance, in line with a sound overall financial plan. Then you can relax and not worry about market declines.

Yet doing nothing takes discipline, especially while others are frantically making changes to their portfolios, often to their detriment. These people don't know that discipline is a key ingredient for investing success. The figures in your account statements during down periods can work themselves into your subconscious, directing the voice in your head to say negative things that might prompt you to foolishly sell at a loss. When people do this, they often sell low after having bought high, a recipe for disaster.

Investing discipline means being committed to your long-term plan – staying on the ship, waiting for the wind to return to market sails.

When you read about the market's crippled start to 2016 and the sad forecasts for the year, instead of damaging your portfolio, have a close look at your asset allocation to determine its capacity to absorb shocks. Once you're confident it can do this, stay calm and let time and global capitalism work for you. Maintaining your discipline involves knowing the difference between history and current headlines.


This article was recently published in the Patriot News. You can visit Tim's page and see all of the articles he has contributed.



This content is based upon information believed to be accurate by ISI Financial Group, Inc. However, it should not be relied upon for legal or accounting purposes. You should always use the custodian's brokerage statements as an accurate reflection of your portfolio. Past performance is not indicative of future performance. Investments involve risk, including the possible loss of principal. Always seek professional advice before making any financial or legal decisions.


Trust can be a vital ingredient in a good will

Written by Tim Decker, AIF®. Posted in Central Penn Business Journal

Old Tree

As they age, many people naturally begin to focus on their wills. While planning your bequests is always a good idea, people often overlook a crucial option: Instead of using a simple will, use a will with a built-in trust.

In many cases, with the guidance of a qualified attorney, a trust can be more effective than a simple will in achieving your estate goals, and provides far more flexibility for changing life circumstances. The provision in wills that does this is called a testamentary trust. You can't incorporate these into a simple will. Instead, you need what's known as a normal will.


Why many salesmen want you to buy an annuity

Written by Tim Decker, AIF®. Posted in The Patriot News

dishonest salesmanQ: We recently attended a free-meal seminar where a salesman tried really hard to sell us an annuity. Your thoughts, please?

A: This is usually about big sales commissions and valuable non-cash incentives for salespeople.

Annuities, products issued by insurance companies, can be expensive, highly inflexible, extremely complex long-term contracts that use various means and methods to provide investment growth. They can be very lucrative for not only insurance companies, but also for those who sell them. And it turns out that high commissions often aren't the only form of compensation these salespeople receive.

On the Air

newsradio-WHP-webTim Decker hosts the weekly radio show “Financial Freedom” on WHP 580 AM Harrisburg every Saturday at 10:00 am Eastern.

He brings his extensive knowledge and over 28 years of experience to the discussion of current financial and wealth management topics. Each show also includes a Q&A session when Tim provides straightforward, unbiased answers to questions from callers. This is the program that represents your best interests, not Wall Street's.

Listen Here

The Sleep-Well-at-Night Investor


ISI Financial Group helps clients take all necessary steps to properly develop and implement a holistic financial plan using evidence-based, time-tested strategies centered around financial science. In his book, “The Sleep-Well-At-Night Investor,” Tim Decker shows readers how misinformation from the mutual fund industry has created widespread harm amongst investors. The book also discusses the temptation to think of investing like gambling, and the tragedy of gambling away savings and security under the guise of investing.

Buy the Book!