Retirement Is a Business Like Any Other

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By John Drachman

Today’s article by contributing writer John Drachman looks at how investors can dial back the anxiety of retirement by viewing it through the filter of a business that builds up a treasury and creates profits.

If the actuarial tables are right, most of us will spend as much time preparing for retirement as living in retirement.

In 1955, the U.S. government census pegged the average life expectancy at 70.

Today, there is a better than 55% chance that at least one 65-year-old partner in a marriage will live to age 92 with a 25% chance of reaching age 97, according to the Society of Actuaries. LIMRA Secure Retirement Institute, a worldwide retirement research organization put it best, calling “90 the new 70.”

Rather than viewing retirement like the “Here There Be Monsters” legend scrawled across the unknown region of an old nautical map, consider applying a concept you already know — the “business plan” – to add clarity, energy and focus to the decisions ahead of you.

In every retirement business, a “treasury” needs to be built up over time in order to “take profits.” Factors like taxation and market risk fit into this equation as well. And, similar to how a business creates specific products or services; in a retirement business, specific lifestyle outcomes are the objective.

Just like running any business, you will need to find ways to preserve and grow your assets, keep up with the cost-of-living, and generate future income payments.

All retirement strategies, of course, have the potential for profit and loss. Your retirement treasury will need to tackle challenges like these in order to take profits:

  • Generate enough return to not outlive your money
  • Meet rising healthcare expenses
  • Increase tax deferral to minimize the impact of taxation
  • Temper the impact of market risk on retirement savings

Thinking of retirement as a business comes naturally to seniors. According to the U.S. Bureau of Labor, the over-65 crowd represents the highest percentage of self-employed people– four times larger than the demographic between 25 and 34.

Need Help to Run Your Retirement Business?

A financial professional can help you with evaluating your needs and risk tolerance details in order to grow your assets and accommodate your future income needs.

The retirement track record for professionals is proven. Retirement-minded investors who work with a financial professional report they are twice as likely to feel well-prepared when the time comes, according to a LIMRA study. These professionals can also monitor your strategy to ensure it continues to reflect your unique needs and requirements.

Let your dreams drive your retirement business –and consider letting professional management help you navigate your portfolio toward your long-term objectives.

John Drachman is a contributing writer to, the premier matchmaker between investors and advisors. John is an IABC award-winning writer, who applies his 30 years of financial marketing experience toward empowering the dialog between investors and investment professionals.

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