disability, life insurance, protection, retirement

Can Your Financial Plan Last to Age 149?

A recent article out of South Africa cites Betje de Vroome as the oldest living human being. She was born Sept. 24th, 1866… The world has literally changed before her very eyes. *

 

Think about how family members are now living longer. While people used to live into their 70’s, people regularly live now into their 90’s. At the church I attend we have a woman who turned 100 over the summer. With medical advancements more and more people are expected to live to 150 years of age.

 

With that being the case, as individuals we have to rethink financial planning, saving strategies and income expectations during retirement. If we work for 40 years (from age 20 to age 60), and then retire, there is a possibility that our retirement will not last 10 or 20 years, but instead 40, 50, or even 90 years. If that is the case, how do we get the math to work out without running out of money?

 

Solutions exist to build Guaranteed Lifetime Income for retirement. Using a retirement nest egg you can create a pension for yourself. The alternative to doing so is the very real possibility that your IRA will run out of money before you pass away…

 

In addition, I think we have to think more generationally. If we are going to have a tough time as 40-60 year olds, imagine what our children will face. Leveraging Life Insurance and the time value of money we can give them the safety net and head start we didn’t have.

 

The “New Normal” is challenging enough, work with an advisor to develop long term strategies that endeavor to reduce the risk of the unknown for you and your descendants.

 

*http://worldnewsdailyreport.com/south-africa-oldest-woman-in-the-world-turns-149-years-old/

Retirement Income. Tax Efficient Planning.

Life Insurance. Disability Insurance

Socially Responsible Investing

 

To learn more contact:

James Cox

Cell: 215 768 5883

Email: james_cox@devon-financial.com

Devon Financial Partners 744 W Lancaster Av Suite 235 Wayne, PA 19087

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 954 RIDGEBROOK RD SUITE 300, SPARKS, MD 21152, ph# 410-828-5400. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian.DEVON FINANCIAL ASSOCIATES LLC is not an affiliate or subsidiary of PAS or Guardian. 2017-47867 Exp 10/19

 

 

Climate change, economy, new economy, retirement

Global future growth… and Climate Change

A recent Bloomberg article titled “The Global Growth Hotspots of the Future Are Here” discussed an HSBC report which advises that investors need to focus on the growth of cities in the Emerging Markets.

“While wealthier countries are more urbanized today, the proportion of urban to rural dwellers in emerging markets is expected to climb to 63 percent in 2050 from 50 percent now, according to the study, which draws on research by McKinsey and the United Nations

By 2050 some 5 billion people – more than half the world’s population – will live in emerging market cities, and account for more than half of global gross domestic product growth.

That means policy makers will have to balance the upsides of urbanization – economies of scale, better productivity and infrastructure, chance encounters that lead to new ideas, better productivity and infrastructure – with the potential downsides, in the shape of increased crime, pollution and perpetually snarled traffic.  If that doesn’t happen, these ill effects could sap economic potential”, HSBC economist James Pomeroy says.

 

Cities like Dhaka, Karachi and Lagos will be among the world’s 10 most populous cities, according to the study. By 2030, 81 of the world’s 100 most populous cities will be in emerging markets.

While the article cites the growth excitement and upside of Emerging Market investing, i.e. Infrastructure build out, rising wages, developing markets and supply chain feeder businesses, the article ignores completely the elephant in the room… Climate Change risk…

In a study last year in Nature magazine, scientists looked at the effect of rising global temperatures and their effect upon the ability of various populations to be productive economically. What they found is as temperatures rise, human productivity decreases. As productivity decreases, GDP falls.

This study concluded that it is their expectation that the GDP of Emerging Market countries is expected to fall by 75% by 2100. Because Emerging Market countries tend to be equatorial and in higher temperature zones, the impact is greater than the impact is expected to be on the United States and Europe.

Rising temperatures will continue to affect global food supplies, water availability, and social stability, especially in the Emerging Markets. The terrible situation in Syria was driven to a large degree by the drought in 2012 and the effect it had on the social fabric. Anyone who discounts the impact of climate on economic and societal viability going forward is only looking at part of the economic and financial puzzle.

We are reaching the limits economic growth because of the climate and shrinking resources. We need to examine our economic expectations, and adjust accordingly.

https://www.bloomberg.com/news/articles/2017-04-29/the-global-growth-hotspots-of-the-future-are-here

https://www.nature.com/nature/journal/vaop/ncurrent/full/nature15725.html

Retirement Income. Tax Efficient Planning.

Life Insurance. Disability Insurance

Socially Responsible Investing

 

To learn more contact:

James Cox

Cell: 215 768 5883

Email: james_cox@devon-financial.com

Devon Financial Partners 744 W Lancaster Av Suite 235 Wayne, PA 19087

This material contains the current opinions of the author but not necessarily those of Guardian or its subsidiaries and such opinions are subject to change without notice.

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 7 Hanover Square, New York, NY 100034. 888-600-4667. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. Devon Financial Partners, LLC is not an affiliate or subsidiary of PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.

Investing in foreign securities may involve heightened risk including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws. Such risks are enhanced in emerging markets. 2017-40029 Exp 05/19