Investors accumulate funds for a variety of reasons. Educating children, building the long-sought dream home, charitable giving, legacies for family members – the list of objectives is endless. However, by far the number one priority is to fund a period at the end of a career(s) where one has the option to work – or not. Much has been written about the history of the concept of retirement.
It wasn’t so long ago that the notion of having a leisure time with such choices had never been considered. Then the Social Security Act was signed into law in 1935 by President Roosevelt – and age 65 was deemed to be the age at which a participant in the plan could “retire”. Interestingly, the average life expectancy of the American worker was less than 65 at that time – so mathematically no one would live long enough to receive a benefit! A lot has changed since then. We are living longer. A pattern coined “cyclical career systems” by some suggests that we may have several periods of work in our lives – each period of work followed by an extended time of recharging and leisure – followed by another career. This cycle might be repeated numerous times in many cases. The evolution from the agricultural age to the industrial age to the information age has created opportunities for workers to continue meaningful employment far past that of the manual labor more prevalent in 1935.
Social Security was never intended to be the sole support of the aging retiree. As a result, an entire industry – retirement planning – emerged which included designing various income and growth investment strategies. Fortunately, the account building opportunities have been pretty good in the last several years. The ability to build the nest egg sufficient to accommodate a desired lifestyle has been beneficial to a large portion of our population.
In case you are wondering, the outlook for the market continues to be favorable over the course of this year. At the risk of sounding like a broken record each week – the near term is always teeming with opportunities for volatility. In fact, a 5-10% correction is common during most growth cycles. However, eased tensions over the Presidential inauguration, the growth in vaccination numbers, and fervor regarding a pending government stimulus plan continue to shine a favorable light on market conditions through the next 6-12 months. In fact, the strategists at Federated Hermes are projecting a 20% market growth this year. So, continue to stay strapped in!
Back to the retirement discussion. I ran across some interesting data regarding the best states in which to retire. My experience is that most retirement moves are a function of where the grandkids live. Recently WalletHub has published a study ranking the 50 states across three dimensions 1) Affordability, 2) Quality of Life, 3) Healthcare. Unfortunately, many retirees have kids/grandkids scattered to the winds – so one destination based on where the family resides becomes problematic.
You will be pleased to know that Louisiana ranks number 34 out of 50. Nice to see this time we are not at the bottom of a national ranking list! That is primarily on the strength of affordability – and reasonable scores on Quality of Life and Health Care. Interestingly – a side note, when I meet people who have moved here to retire, they personally rank our state very high. Locals who have always been here seem to accumulate a negative bias – as if the grass is greener somewhere else! It is said that the grass is greenest in your backyard where you water it.
Since I know you have to know: Florida and Colorado were ranked number 1 and 2, while New Jersey and New York came in at 49 and 50. If you’d like the complete report simply google 2021’s Best States to Retire and you’ll find informative information about the entire study. Best wishes for a joyful journey into your Golden Years.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Investing involves risk including loss of principal.
Neither RFG Advisory and its Investment Advisor Representatives nor Private Client Services and its Registered Representatives provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. Please consult your own tax, legal, and accounting professional for guidance on such matters.
Visit us at www.williamsfa.com. Tommy Williams is a CERTIFIED FINANCIAL PLANNER™ Professional with Williams Financial Advisors, LLC. Securities offered by Registered Representatives through Private Client Services, member FINRA/SIPC. Advisory products and services offered by Investment Advisory Representatives through RFG Advisory, a Registered Investment Advisor. RFG Advisory, Williams Financial Advisors, LLC and Private Client Services are unaffiliated entities. Branch office is located at 6425 Youree Drive, Suite 180, Shreveport, LA 71105.