Stan Molotsky, president and CEO of SHM Financial, has been in the business since 1958 and knows more than a thing or two about protecting your assets through every stage of life, including times of extreme economic disruption.
"Nobody can predict what’s going to happen. What you have to do is constantly utilize strategies that can help you protect your income, your assets and eventually your legacy by doing different things," Molotsky says. "We’ve overcome disasters like this in the past and we will overcome the current one as well if we keep safe, keep smiling and keep walking."
Protection of assets
In 1958 when Molotsky first started out in the business, your assets were projected to last you until 75 years old. Today, people are living longer so the goal is to help them protect their assets until 110 years old. The goal is to constantly be moving forward—or at least sideways—and not backwards, especially as you get close to retirement and the first year or two into retirement. Molotsky says these five steps will put you and your family on the right track when it comes to your financial health:
• Look at your assets all the time
• Identify your spending patterns
• Determine what you want to do with your assets
• Make adjustments based off your patterns and wants
• Calculate the amount of risk you want to take on those assets
Post-retirement exit strategies
Assessing your assets post-retirement is even more critical because once you are in retirement, the probability of additional income coming in is shut down—unless you were to do some part-time work or you hit the lottery. “Once you have retired, that block of money is it,” says Molotsky. “That has to carry you to age 110, or whatever age point you want that money to carry you to. You have to prepare for that money to do those things that you want it to do.”
Molotsky says it is crucial to set aside money for the events that could take place at any given time and it’s even more important to factor in those events taking place during your retirement. Here are just a few of those unexpected events to think about:
• Natural tragedies like floods, fires, hurricanes, tornadoes, etc.
• Major health issues either to yourself or your family
• Family emergencies that require a large amount of money
Pre-retirement exit strategies
Molotsky tells us that as you get close to retirement, the one thing you can’t afford is a decline in the asset base that you have as you prepare for the first year or two of retirement. “It’s critical when you get closer to retirement that you make sure that wherever your assets are, that they’re in things that, the majority of, will not deteriorate in value,” says Molotsky.
These four fixed guaranteed kinds of things are where Molotsky says people who are preparing for retirement should rely on more than the stock market, especially if you can’t afford the risk of a declining stock market:
• Certificates of deposit
• Savings accounts
• Fixed annuity options
• Other assets that are predictable
For your current complimentary Risk Tolerance update report, call 1 (800) MONEY-SHM or visit their website to request your copy at www.shmfinancial.com.
Road | Suite 305 | Voorhees
100 Richey Ave.
1 (800) MONEY-SHM
Published (and copyrighted) in Suburban Family Magazine, Volume 11, Issue 6 (August 2020).
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