Posted on Jun 10, 2020
Our presenter on June 10th was Scott Tagliareni with New York Life.  He spoke to use about Finance: the new normal.
Mr. Tagliareni has been in the financial services industry for 18 years and has been with NY Life since 2005.  He believes in a client-centric approach to investing.
When facing the challenges in today’s environment, he focuses on four areas of planning – protection, retirement, investment, and estate.  With life expectancy increasing, the fear of running out of money is a real concern.  The idea is to balance spending more in the early part of retirement with making sure you have enough to last the rest of your life.
An area of anxiety when making sure your money lasts is rising healthcare costs and the increasing costs of nursing homes and retirement communities.  Another is the “sequence of returns risk” where retirees experience large negative returns on their investments early in retirement.  This combination of the order of returns on investment with the timing of regular withdrawals can have a dramatic impact on how long your money will last.
Mr. Taliareni focused on three withdrawal strategies: (1) systematic – taking out a set annual amount over one’s lifetime; (2) bucket – putting a set amount in a bucket to spend over the first three years of retirement with another bucket replacing that one with a steady income; (3) flooring – having a set amount that will last your lifetime, coming from social security, pensions, and annuities.