The Keen Advantage

Our tag line says it all: Perceptive. Personalized. Precise. We are always looking out for you. Retirement planning and the issues that surround it can be overwhelming. Are you attempting to go it alone or do you have the assistance of a competent professional team? Below are several examples of common challenges and perils that we deal with regularly.

1. Not properly planning for inflation.

Inflation is a challenge that comes on somewhat imperceptibly over time. With potential retirements of 30 years and longer we must plan for inflation. Consider the $0.10 price of a postage stamp in 1975 or the cost of your first home or car. We believe an investment plan that doesn't consider inflation isn't a plan.

2. Tax Pitfalls.

Making a wrong decision in your retirement planning could potentially costs tens of thousands of tax dollars. Some common tax mistakes involve pre age 59½ and post age 70½ distributions from IRAs, as well as inaccurately filled out rollover paperwork. Do you have a competent tax preparer who will ensure that all i's are dotted and t's are crossed? We suggest holding a joint, year-end meeting with your tax preparer to consider distributions, withholdings, harvesting tax losses if necessary, and other tax-related issues.

Keen Wealth Advisors is not a legal or tax advisor, however, we will be glad to work with you, your accountant, tax advisor and or lawyer to help you meet your financial goals.

3. Irrevocable decisions that are made poorly.

What pension option should you choose? Can you take a lump sum or are you required to take the pension monthly? Should you take the single life method or joint and survivor? How about your life and health insurance? Should you keep the company insurance or let it lapse? There are many decisions that are irrevocable once made. We cannot help with those decisions after the fact. By speaking with us first, you’ll receive the benefit of our considerable experience.

4. Under diversification.

Do you understand the seriousness of investing too much of your assets in one stock? Most people do not. Just ask someone from Sprint who was planning to retire 10 years ago who had all or most of his or her money in the company stock. As those stock prices declined, there were life-changing repercussions for people who were too invested. Even the unmanaged S&P 500 is up 60 times since the end of World War II – diversification makes sense. We feel the power of a professionally managed, properly diversified and rebalanced portfolio can be tremendous over time. Too much in one stock can be devastating.

Diversification cannot eliminate the risk of fluctuating prices and uncertain returns.
Past performance is no guarantee future of future results.

The S&P 500 (a registered trademark of the McGraw Hill Companies) is an unmanaged, index of common stock. Investors can not invest directly in an index.

IRA withdrawals are subject to ordinary income tax and may be subject to a federal 10% penalty if taken prior to age 59½.