Phil-wasserman - retirement-income-planning

© 2005 - Phillip Roy Financial Services Call us Toll Free: 1-888-225-8161

Introduction toIntroduction toRetirement Income PlanningRetirement Income Planning

Live Richer in RetirementLive Richer in RetirementThan Ever Before!Than Ever Before!

Phillip Roy Financial ServicesOffice locations: Clearwater/Tampa, Sarasota, Naples, Boca Raton,

North Palm Beach, Fort Lauderdale, Orlando


Social behaviorists say:• Retirement is an uncertain social experiment

evolving out of the need to retire older workersto make room for younger workers.

• Over time, the concept of retirement became thereward for decades of hard work and many times,unfulfilling work.

What is Retirement?

Source: Survey by gerontologist Ken Dychtwald, Ph.D., president and CEO of AgeWave, February 2005.


• “Aging is humanity’s greatest, most important, and most enduring discovery. The discovery and exploitation of human longevity is what has led to the globe-dominating species we have become.” Dr. William Thomas, M.D.

• We have the most awesome resource in our retirees to help solve society’s most difficult problems.

– Retirees can give of their time, skills, wisdom, and shared experiences.

– This legacy will make for better individuals and communities.

– To do this, retirees must have a safe, sustainable retirement income.

Retirement is a Gift of Time


Why Wealthy Americans Worry

0% 20% 40% 60% 80% 100%

Children will have it tough financially

Terrorism will hurt economy

Education costs grow too fast

Inflation will erode investment

Stock market gains will be lower

Taxes will rise steeply

Unpredictable long-term returns

High taxes will decimate our estate

Can't maintain income level

Source: U.S. Trust Survey of the Affluent, 2005

20052004


Downward Trend in U.S. Savings

0%

2%

4%

6%

8%

10%

12%

1970

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

Source: Bureau of Economic Analysis, U.S. Department of Commerce, 2005

Personal Savings% Disposable Income

Net National Savings % GDP


The Perfect Retirement Storm


is when you:

(1) Undersize your retirement nest egg- A TIAA-CREF Institute study on spending in retirement reported that more households

are surprised by how high expenditure needs are.- People often underestimate health care costs, a growing concern as more and more employers drop coverage for retirees or spouses.

(2) Underestimate how long you are likely to live- Most people think of life expectancy as a target date by which you are likely to die rather than the point estimate at which about half the people of a certain age will still be alive. If a 65 year-old man has about a 30% chance of living to 90, this means, in actuarial science, that half of the people studied are expected to live longer.

(3) Overestimate how much you can withdraw from your retirement portfolio without depleting it- Using Retirement Income Planning (RIP), retirees develop more awareness about how different withdrawal rates can affect the odds that their retirement assets will last.

The Perfect Retirement Storm

Source: Society of Actuaries and LIMRA International (a life insurance marketing and research organization), Retirement Storm Clouds by Walter Updegrave, Money Magazine, November 2003


Threats to Your

Retirement Nest Egg


Threats to Your Retirement Nest Egg

Inflation

Taxes

Fees

Risk/Volatility

Age

Health


Age & Health

Retirement Threat #1


Age & Health - Retirement Threat #1

Don’t underestimate your life expectancy• If you are 65, there is 50% chance you will live beyond 85.

• If you are a 65-year-old man, there is at least a 30% chanceyou will live to 90.

• If you are a 65-year-old nonsmoking woman, there is atleast a 50% chance you will live to 90.

• Widows live, on average, about 18 years beyond the deathof their spouse.

Source: Ask the Expert, American Online, November 29, 2003. Raymond James financial seminar, September 28, 2005.


U.S. National Center for Health StatisticsLife Expectancy

0

10

20

30

40

50

60

70

80

90

Life

span

in Y

ears

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 2000

Source: National Vital Statistics Report, March 18, 2002

1990

U.S. Census Bureau (2000) estimates the number of seniorsage 65 and older will double by the year 2030 to 70 million (over 25%) of the U.S. population.

The fastest growing segment of society over the next 50 yearsis the 85 and older population.


Health is Unpredictable• If you are 65, there is 50% chance you will need

Assisted Living care at least once during your life.- If you are 70, there is at least a 68% chance you will need it.

- If you are 80, there is at least a 75% chance you will need it.

• Many U.S. retirees skip doses of prescription drugs ordon’t fill prescriptions because of the high cost.- Over one-third of nearly 11,000 Americans over age 65 who were surveyed

said they skimped on prescribed drugs to save money.

- This study included people with chronic and costly diseases, including diabetes and heart disease, for whom prescription drug treatment is essential.

Source: Commonwealth Fund and Kaiser Family Foundation study, Washington Times, August 1, 2002.


The High and Rising Cost of CareNursing Home: Private and Semi-Private Room

$168$181

$192

$143$158

$169

$0

$50

$100

$150

$200

Private SemiPrivate

2002 2003 2004

Nat

iona

l Ave

rage

Dai

ly C

ost

Source: MetLife Annual Surveys

Caution: Costs vary widely by location. Check your local area.



Average Annual Costs for Assisted Care

• Private Room in a Nursing Home $ 70,080

• Semi-private Room in a Nursing Home $ 61,685

• Home Health Aides (HHAs) $ 52,416 provided by a home care agency at an average rate of $18 per hour

Source: MetLife Mature Market Institute annual survey of nursing home costs in the U.S., 2004


Spending Down

Your Retirement Assets



• People retiring at 65 often assume theirassets have to carry them only 20 years.They are going to be wrong about half the time.

• This means a lot of retirees could be entering their nineties with investment portfolios that are already depleted or on the verge of running dry.

Source: Ask the Expert, American Online, November 29, 2003.

Don’t outlive your money


Spending Down Retirement Assets

How Much Money Do You Need?• A MetLife survey asked what percentage of pre-retirement income will be required to support yourself after your career. More than half of the respondents said 50% or less. This might be the case, but only if you:

– Pay off your mortgage– Remain in excellent health– Live in an area where living costs are low– Prefer low-cost retirement activities only

• A 2001 study conducted by Georgia State University and others found, on average, people needed about 80% of pre-retirement income.

Source: MetLife survey results, Money Magazine, November 2003.


How Fast Can You Draw DownYour Assets?

A MetLife survey asked what percentage of your portfolio couldbe withdrawn each year to ensure assets last a lifetime. About 27%of the respondents said 4% per year withdrawal rate.

But, it depends upon:

• How your money is invested• How financial markets perform• Inflation and Taxes• Age and Health

Source: MetLife survey results, Money Magazine, November 2003.

Spending Down Retirement Assets


Making Your Retirement LastSource: MetLife Mature Market Institute, 2003

0

10

20

30

40

50

60

70

80

90

100

4% 5% 6% 7% 8%

Initial Withdrawal Rate

% R

eti

rem

en

t P

ort

folio

Rem

ain

ing

30 years

35 years

Example - A MetLife study indicates that to sustain your portfolio, use an annual withdrawal rate of 4% based upon a T. Rowe Price forecast for a 60% stock, 40% bond portfolio.

Note: A withdrawal rate that's fine in a bull market may deplete your retirement assets much faster if the market slumps.


Inflation



If you had $1 million in 2000, (assuming 6% inflation)you need:

$1.34 million in 2005, and

$1.8 million in 2010

Just to Stay Even!

Inflation - Retirement Threat #2


$ 4,290,00025$ 3,210,00020

30

15105

Years from now

$ 5,740,000

$ 2,400,000$ 1,800,000$ 1,340,000

You will need over (rounded)Assume 6% annual inflation

The High Cost of Inflation

$1,000,000 Today - Adjusted for Inflation

Although the CPI inflation has averaged about 4% per year over the past two decades,this rate does not take into account factors like housing, prescription drugs, travel, etc.Source: U.S. Department of Labor, Bureau of Labor Statistics, October 2002


Risk/Volatility



“Safety” is Critical to SuccessfulRetirement Income Planning

Money Market Funds Fixed Annuities Bank CDs

Mutual Funds Your Home

Stocks Limited Partnerships

Financial VehicleRisk Level

Higher

Lower


• Risk-taking is an inevitable ingredient in investing, and in life, but never take a risk you do not have to take. (Peter Bernstein quote)

• Investing without research is like playing stud poker and never looking at the cards. (Peter Lynch quote, global-investor.com)

• I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years. (Peter Bernstein quote, global-investor.com)

• Good planning involves understanding the risk, mitigating it and making trade-offs as needed. (What Not to Do in Retirement Planning, Forbes.com, May 12, 2005)

Risk - Retirement Threat #3


Tips about taking risk:– Recognize that we do not know the future

– You should take risk only if losses will not threaten your survival

– You must focus on how serious the consequences could be if you are wrong

– Make risk management a conscious part of the investment process

Source: Peter Bernstein interview, Money Magazine, October 2004



A Roadmap to RetirementAssume Less Risk As You Get Older

AGE

ASS

ETS

Age 45 to 55Growth

Age 55 to 65Balanced

Age 65 to 75Conservative

Age 75+Income

No more than10% of your

portfolio shouldbe at risk (stocks)

None of yourportfolio should

be at risk

Source: “Why We Need to Fix the 401K”, Jane Bryant Quinn, Newsweek, August 19, 2002


Don’t lose money• In years 2000 to 2002, many people lost 20% to 50%

of their portfolio.Source: Where was Your Broker in 2000-2002, Suze Orman

• The first rule is not to lose money. The second rule is not to forget the first rule. Source: Warren Buffet quote, global-investor.com



Wall Street May Not Be

Your Friend



• The American wage earners’ pension and 401K savingsare now the major source of capital - making wealth moreconcentrated. (Jack Bogle, The Battle for the Soul of Capitalism, Yale Press, September 2005)

• “Our economy has suffered because managers haveplaced their own economic interest ahead of those ofowners and investors.” (Eliot Spitzer, Attorney General, New York)

• “Capitalism has too many characters and not enough menof character.” (Cliff Asness, Ph.D., Managing and Founding Principal, AQR Capital Management)

• “Individual investors and beneficiaries remain helpless,intermediaries are passive or conflicted, and boards notyet effective.”(Ira Millstein, Senior Partner, Weil, Gotshal & Manages LLP)

Source: Review comments about John Bogle’s new book, The Battle for the Soul of Capitalism, www.yalepress.yale.edu

What’s Wrong in Corporate America?


Brokerage Firms• “The broker is not your friend”

He is more like a doctor who charges patients on how often they changemedicines. He gets paid far more for the stuff the house is promoting thanthe stuff that will make you better. (Warren Buffet quote)

• “Be careful, even if your broker is fee-based”Brokerage firms often team up with money managers to create personalized

portfolios of stocks and bonds, much like a mutual fund. You won’t pay a commission, but fees can be very high. (Arthur Levitt quote, former SEC Chairman)

Source: How to Sleep as Well as Your Broker, Arthur Levitt, Take on the Street, Vintage Books, 2003, p. 20, 37

Wall Street May Not Be Your Friend


Brokerage Firms• Do you think your mutual fund - the one you

hope will pay for your retirement - is in goodhands?

“When you have strong managers, weak directors, and passive owners, it’s only a matter of time until the looting begins.”

Source: Interview with John Bogle, founder of Vanguard - one of the world’s biggest mutual funds, NOW WITH BILL MOYER, www.pbs.org, October 2003



Fire Your Broker“If you have more than $50,000 to invest, you should fire your broker and find an investment adviser.” (Arthur Levitt quote)

• Brokerage firms would like you to think that they perform the same functions as investmentadvisers. But they’re not the same as independent investment advisers.

• Most brokers do not have a fiduciary duty (a legal obligation) to put your interests above his/herinterests or that of the firm. In any case, an investment adviser’s fiduciary duty is on a higherplane.

• There are different kinds of investment advisers, depending upon their qualifications and howthey are paid. Most charge fees or commissions.

• Be sure you find an adviser who can offer you a wider array of investments to lessen the chancesof conflict of interests and provide you with more diverse investment choices.

Source: How to Sleep as Well as Your Broker, Arthur Levitt, Take on the Street, Vintage Books, 2003, p. 34-36



Fees



Fees Can Drastically Affect Your Returns

• Most individuals ignore the effects of high investment fees

• They watch the tab for dinner more closely than examining the fees they see

. . . or don’t see!


Fees - Retirement Threat #4

Many retirees consider a 2 percent annual fee to be quite low, but they don’t realize that it is “really a punishing levy”. Example:

If you invest $10,000 in a domestic stock fund with an expense ratio of 2 percent and a sales load of 3 percent, and

you get an annual return of 7.5 percent for 20 years, yourmoney would almost triple to $27,508. But, you would have lost $14,970 in fees and foregone earnings over the 20 years.

Therefore, you made only: $27,508 - $14,970 = $12,538 or 46%.Due to fees, you lost the opportunity to realize 54% of the gain.

Source: High Fees Strangle Returns, Arthur Levitt, Take on the Street, Vintage Books, 2003.


Mutual FundsAmericans have over $3 trillion invested in activelymanaged stock mutual funds and another $800 millioninvested in actively managed bond funds.• Experience clearly shows that fund managers’ stock and bond picking

abilities usually fall short of their considerable fee-imposing abilities.

• Mutual fund companies run up at least $70 billion per year in costs forinvestors in their attempts to beat the market.

• “In total, expect to pay something in excess of 4% (fees) on your fund assetsfor a load fund. If you are good at picking only no-load funds, you shouldstill expect (fees) totaling close to 3% per year. Compound these (fees) overyour lifetime and you’ll see the serious bite they take out of your savings.”

Source: The Great Mutual Fund Trap, Gregory Baer & Gary Gensler, Broadway Books, 2003, p. 108-109



Mutual FundsOver 55 years ago, John C. Bogle (founder and former Chairman of theVanguard Group) sat in Princeton University’s Firestone Library andcontemplated his thesis topic on mutual funds.

• Over a half-century ago, Jack Bogle noted that the mutual fund industry was anindustry in which the idea was to “sell funds that offer the small investor peaceof mind, an industry primarily focused on stewardship”.

• In contrast today, Bogle notes the mutual fund industry is one “focusedprimarily on salesmanship”, an industry in which “marketing (determines)what we sell, and in which short-term performance is the name of the game”.

Source: Remarks before the Harvard Club of Boston, John C. Bogle, January 14, 2003



Mutual Funds“The way mutual funds are sold and managed reveals a culture that thrives on hype, promotes short-term trading, and withholds important information.”

- The industry can mislead investors into buying funds on the basis of past performance, which should be only one of several factors to consider.

- The industry spends millions of dollars on marketing, but does a relatively poor job explaining the effect of annual expenses, sales loads, and taxes on investment returns.

Source: The Seven Deadly Sins of Mutual Funds, Arthur Levitt, Take on the Street, Vintage Books, 2003, p. 46-47



Fees - a “Punishing Levy”• The way fees are automatically deducted from a fund’s returns makes them all but invisible. You never see an invoice and you never have to write a check.

• Fees can be confusing, but not impossible to figure out if you know what to look for: - The fee table at the front of the prospectus lists one-time fees (e.g. front-end and back-end loads) and recurring charges (e.g. advisory fees and distribution fees that can include advertising).

- The Expense Ratio is the percent of total fund assets (your money) eaten up by annual fees. Although it is used to comparison shop among funds, beware that it does not include the loads, which are charged only once.

Source: High Fees Strangle Returns, Arthur Levitt, Take on the Street, Vintage Books, 2003, p. 50-51



Fees - Hidden from View• Stock pickers, accountants, distributors, transfer agents, brokers, advertisers, attorneys, custodians and others suck steadily at the $7 trillion inside mutual funds.

• Once recent challenge by New York Attorney General Eliot Spitzer is that “fund companies hide steep trading expenses from their customers”.

• “For every dollar you know you spend on fund expenses, another 40 cents is hidden from view,” said Mercer Bullard, a University of Mississippi assistant professor who acts as an investor advocate at www.fund democracy.com

Source: Constant drip of fees can soak mutual fund owners, Mark Davis, Business Spotlight, news-press.com, 2004



“Just follow the money”• Variable annuities, mutual fund B shares, and brokerage firms’ in-house

funds rank among Wall Street’s more dubious offerings. Yet brokers oftenare relentless in pushing these products, even when they aren’t in theclient’s best interest.

• Fund A shares charge big upfront commissions, while B shares levy bothhigher annual expenses and a back-end sales charge if you sell in the firstsix years or so.

• But, regardless of the fund type, the brokerage firm immediately collects a4% or 5% commission from the fund company. The selling broker thengets perhaps 40 percent of this 4% or 5% commission.

Source: Brokers’ sales tactics stunt investment growth, Jonathan Clements, Wall Street Journal, 2004



“Just follow the money”• Many variable annuities charge both hefty annual expenses and a high

surrender charge, making it tough to earn decent returns.

• While investors may not like variable annuities, brokers love them. As withFund B shares, there are usually no breakpoints (reduced commission) onlarge investments and investors tend to sit tight due to surrender charges.

• Brokerage firms often collect commissions of more than 5% commissionon variable annuities, making them a tempting product for income-hungrybrokers.

• The best way for brokers to collect a fistful of commissions is to land newaccounts. But, because brokers spend so much time hunting for newcustomers, they tend to neglect existing clients.

Source: Brokers’ sales tactics stunt investment growth, Jonathan Clements, Wall Street Journal, 2004



Taxes



Taxes - Retirement Threat #5

Income Tax Mistakes

• Retirees who pay income tax on earnings they are not using, for example:

Last year, one senior couple earned $64,000 from their investments. and received $20,000 in social security income. They spent $24,000

of the investment earnings and all of the $20,000 social security income.

By moving the extra earnings of about $40,000 (the $84,000 income earnedless $44,000 income used) to a tax-deferred vehicle, they could save about$15,000 in income taxes.

• Retirees who pull too much money out of IRA funds instead of taking money out of regular non-IRA accounts



Estate Planning Mistakes Retirees who do not plan their estate properly can leave much of their wealth in the hands of the IRS upon death.

• The so-called “Death Tax” threshold in 2005 is $1.5 million, the amount below which no federal estate tax is paid

• Since 2003, the top death tax rate has dropped from 50% by 1% per year (e.g. 45% in 2009)

• In the year 2010, the top estate tax rate is scheduled to be 0%

• But, unless new legislation is passed, the estate tax threshold will return to $1 million in 2011, with a top tax rate of 50%


This Means

for Sizeable Estates,

The IRS is

Your Partner!



Estate Planning Mistakes

Retirees who do not properly use gift tax rules to reduce their taxable estate

• Retirees may gift $11,000 to anyone on an annual basis e.g. This money could be used to pay premiums on a life insurance policy

• Life insurance can be used to help assist heirs in paying estate taxes

• Life insurance can also be used to transfer wealth tax-free


Einsteinand

The Wonder of Tax Deferral


The Wonder of Tax-Deferral Compound Interest and the Rule of 72• Albert Einstein is credited with discovering the

compound interest Rule of 72.

• Albert Einstein (1879-1955) called compound interest the 8th Wonder of the World - it can work for you, or against you:

- When you invest, it works for you.

- When you borrow, it works against you!

• Making interest on interest, the power of compounding interest, is truly magical:

At 15% interest for 25 years, $10,000 would grow to $330,000.

Source: Compound Interest . . . The 8th Wonder, brainyquote.com/quotes/authors


Rule of 72• Find the average annual return on your investments from your financial statements. This is your growth rate.

• Divide 72 by your growth rate. This is the number of years it will take for your investment to double, assuming your rate of return remains constant. Keep in mind that rates of return for most investments are not guaranteed. Example:

If you put $2,000,000 in a tax-deferred retirement account, it will grow to $4,000,000in 9 years, assuming a constant growth rate of 8%.

However, it will take 14 years for the $2,000,000 to double in a taxable accountat that same 8% annual rate of return (assuming a 33% tax rate).

The Wonder of Tax-Deferral


The Power of Tax Deferral$100,000 Initial Investment

$123,488 $133,822 $124,352$152,642

$179,084$156,940

$232,998

$320,714

$258,914

$355,654

$574,350

$441,532

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

5 Years 10 Years 20 Years 30 Years

Taxable Account Tax-Deferred Account Tax-Deferred Account After Tax

Assumes 28% Tax Bracket; Hypothetical Annual Return of 6%

Hypothetical ExampleNot representative of any particular product


Wealth Management Pitfalls


Top 10 Wealth Management Pitfalls

1. Neglecting Your Retirement Savings 2. Choosing the Wrong Investment Strategy 3. Drawing Down Assets in Retirement 4. Leaving Assets Unprotected 5. Mismanaging Cash Flow 6. Mismanaging Debt 7. Mismanaging Windfalls 8. Failing to Maximize Retirement Plan Benefits 9. Failing to Plan Your Estate10. Leaving Heirs Unprepared

Source: Top 10 Wealth Management Pitfalls, Sue Stevens, Morningstar, May 13, 2004


1. Neglecting Your Retirement Savings- Have years flown by without increasing your retirement savings?- Should you fire your broker and hire an independent financial advisor?

2. Choosing the Wrong Investment Strategy- Do you know how to protect and preserve capital?- Have you misjudged your risk tolerance?- Are you re-balancing your portfolio periodically?

3. Drawing Down Assets in Retirement- Will you run out of money?- Do you know how to manage taking your Required Minimum Distributions?

4. Leaving Assets Unprotected- Do you have adequate life insurance?- Have you considered Long Term Care insurance?- Do you have enough liability insurance coverage?




5. Mismanaging Cash Flow- Are you minimizing your taxes?- Are your capital loss carry forwards being managed to maximum advantage?

6. Mismanaging Debt- Can you better use cash values of life insurance policies?- Are you paying too much in fees and interest?- Could you use a mortgage to better manage debt?

7. Mismanaging Inheritance- Over the next 10 years, $10 trillion will pass from generation to generation.- Most heirs don’t know how to integrate that wealth into their own portfolios.

8. Failing to Maximize Retirement Plan Benefits- Do you know that when you take distributions from nonqualified plans, they are immediately taxable?- Do you know the tax issues, cash flow considerations, and potential penalties in IRA rollovers?




9. Failing to Plan Your Estate- The best way to care for your family if something happens to you is to put an Estate Plan in place.- After setting up a plan, be sure to fund the trusts and change the beneficiary designations on life insurance, IRAs, etc.- Planning should include considerations for disability as well as death, and include:

. Powers of attorney for health care and property

. Living trusts

10. Leaving Heirs Unprepared- A big concern for families with significant wealth is how to teach their heirs to responsibly manage their inheritance. You can set up children’s trusts within estate documents that stagger the ages for access to the money over time - e.g. at ages 25, 35, and 45.

- Another concern is who might actually inherit the estate that you intended to leave to your children. A Dynasty Trust can be used to insure your bloodline

will inherit your estate regardless of unanticipated events like divorce.




What is needed?

• New financial products with up-to-date, expert advice:– Old savings benchmarks and advice are simply outdated– Tax codes and investment opportunities have changed

• Retirement Income Planners (RIP) must be more creative and resourceful in helping clients decide:

– What retirement means to each individual, and– How to achieve those financial and personal goals


Solutions forYour Retirement Nest Egg

BeatInflation

MinimizeTaxes

LowerFees

Reduce Risk/Volatility

StayActive

EatHealthy


• Keep Your Retirement Money Safe

• Help You Make Money on Your Money

• Provide You With Easy Access to Your Money

• Help with Estate Planning, Wealth Creation and Wealth Transfer

• Minimize Your Tax Consequences

Comprehensive independent financial planningto:

What is needed?


About Phillip Roy Financial Services

Phillip Roy Financial Services, LLC (PRFS) provides financial services to qualified clients,including opportunities to invest in hedge funds and alternative investments. Any discussionof investments and investment strategies of funds (including current investment themes,research and investment processes, and portfolio characteristics) represents the views ofPRFS at the time of publication. All expressions of opinion included herein are subject tochange without notice and are not intended to be a guarantee of future events.

This document is supplied by PRFS for information only and does not constitute asolicitation to buy or sell securities. Opinions expressed herein may differ from the opinionsexpressed by other businesses and activities of PRFS. Although information and opinions inthis document have been obtained from sources believed to be reliable, we do not warrantthe accuracy or completeness and accept no liability for any direct consequential lossesarising from its use. The information is representative of PRFS viewpoints at the time ofpublication. Not all products and services are available at all locations and not allinstruments are suitable for all investors.


Unforgettable Quotes

• The most powerful force in the universe is compound interest. (Albert Einstein)

• A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life. (Suze Orman)

• You should invest in a business that even a fool can run, because someday a fool will. (Warren Buffet)

• The list of qualities an investor should have include patience, self-discipline, common sense, a tolerance for pain, open-mindedness, detachment, persistence, . . ., and the ability to ignore general panic. (Peter Lynch)

• For some reason people take their cues from price action rather than from values. Price is what you pay. Value is what you get. (Warren Buffet)

• Insanity: doing the same thing over and over again and expecting different results. (Albert Einstein)

• The indispensable first step to getting the things you want out of life is this: decide what you want. You can do what you think you can do and you cannot do what you think you cannot. (Ben Stein)

• Winning at money is 80 percent behavior and 20 percent head knowledge. Most of us know what to do but we just don’t do it. (Dave Ramsey)

• First time a Victim; second time a Volunteer. (Suze Orman)

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Phil-wasserman - retirement-income-planning