At Total Financial Solutions, President/CEO Arif Halaby is encouraging those planning for retirement to ensure their at-risk dollars are protected after they reach the “magic number” they set as a goal to begin their retirement.

For instance, if a person has done the math alongside their financial professional and decided they can retire once they have $1 million in their retirement accounts, Halaby advised protecting any money that is at risk so they don’t end up being forced to go back to work if, say, the stock market drops.

“You need to think about this and say, ‘How do I protect that $1 million?’ Because if it’s $1 million and it’s gone up really well and it’s done amazing things in the last two years, then what do you think could happen in the next two years?” Halaby said. “It could go back down, which means, are you going to go back to work? Probably not.”

Related: Total Financial Solutions: Can You Retire On $1 Million?

By looking at that “magic number” as a form of strategic income and protecting the proper amount, a retiree can ensure that they have a guaranteed source of income to live on alongside their pension, social security, etc., according to Halaby.

If the at-risk money is in the stock market, Halaby recommends considering the average time the market continues to go down after a drop before it recovers, which he estimated at around seven to eight years.

“Do the math,” Halaby said.  “How much in income do you think you’re going to need from that period of time from that account? So let’s say it’s $30,000 a year. Okay, so 30,000 times eight years — that’s $240,000. So that’s the number that you put safe.”

This way, if the market starts to go down, a retiree has the freedom to stop withdrawing from their risky accounts and losing money as a result.

“You want to buy when things are inexpensive — not sell,” Halaby said. “But when … food, shelter, clothing, those things are counting on the market, the dollars that are in the market, then you have to protect the other side of it.”

He continued, “That’s important. Don’t just say, ‘Hey, my account is at all-time highs… Now I’m done. Now I’m retired.’ And then the market goes down.”

Total Financial Solutions prides itself in helping its clients design a higher income strategy, protect their principal and lock in their gains, all while securing reliable income for retirement.

For a free consultation, contact them by calling 888-99-RETIRE or by visiting their website www.TFSwealth.com.

Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.  

Total Financial Solutions, Inc.

24322 Main Street

Newhall, CA 91321

661-753-9683

800-990-7344

Total Financial Solutions – Newhall

https://www.youtube.com/watch?v=SeN42fwdqRs

Arif Halaby, Total Financial Solutions, Financial Planning, Planning for Retirement, Retirement Planning