September 2012: The Longevity Issue: Will You Run Out of Money Before You Run Out of Life?

We welcome fall with our back-to-school September 2012 newsletter from Egan, Berger & Weiner, LLC

To celebrate the start of the new school year, below you’ll find an educational primer by our partner Sheldon Weiner on how to be fiscally solvent—no matter how long you live.

Weiner explains:

• Pensions and Social Security checks used to be the main funding for retirement.
• The US Census Bureau reports that more than 50 percent of Americans anticipate working through retirement due to financial and healthcare needs.
• Asked about expected sources of income in retirement, 94 percent of Baby Boomers say they expect Social Security to be a major part of their income.
• And, retirement planning is further complicated by a turbulent economy.

What can individuals do to help themselves along the path of retirement security?
Scroll down for ways to ensure you’ll have enough income to last your lifetime.

Also in this issue: Partner Bryan Beatty invites you to join him for a special golf outing on Sept. 13 at the Reston National Golf Course to raise money for the Alzheimer’s Association. In addition to supporting an incredibly important cause, golfing is also a great way to bond with other professionals. Scroll down for networking tips from golf pro John Byrne, founder of Into the Rough.

And this just in: We are pleased to announce that the firm’s co-founder and partner, Michael Egan, has been honored by ING Financial Partners with the prestigious Advisory Elite distinction, earned by fewer than 1 percent of investment adviser representatives who work with their firm. “Egan has achieved this status for attaining notably high levels of assets under management and because of his investment planning success,” said Karl Lindberg, president of ING Financial Partners. “The Advisory Elite status marks an important career milestone.” Click here to learn more.

From all of us at Egan, Berger & Weiner, we thank you for your business and look forward to talking with you soon. — David Beck, Carmen Martinez, Sheldon Weiner, Howard Pressman, Mike Egan, Bryan Beatty

_Securities and Investment Advisory Services offered through Voya Financial Advisors, member
SIPC. Egan, Berger & Weiner, LLC is not a subsidiary of nor controlled by Voya Financial Advisors._

Are you concerned that your money will run out during your retirement years? You are not alone. By Sheldon Weiner Financial Advisor/Partner Egan, Berger & Weiner, LLC Illustration by www.michaelgibbs.com Surveys suggest that more than 67 percent of Americans are worried about not having enough money for retirement, according to seniorsite.com, and of those, 61 percent fear outliving their money more than they fear death. (1) Here’s why: 1. Pensions and Social Security checks used to be the main funding for retirement. Now, people have to rely more on their personal assets to fund retirement to ensure that their income lasts as long as they do. With an average life expectancy of 78 ½ years, we now live more than a decade longer than we did in 1950, yet retirement age has increased just two years—to age 67. (2) 2. The US Census Bureau reports that more than 50 percent of Americans anticipate working through retirement due to financial and healthcare needs. In 2008, roughly 33 million Americans were between the ages 55 and 64, and that number is expected to reach 43 million by 2020. 3. Asked about expected sources of income in retirement, 94 percent of Baby Boomers say they expect Social Security to be a major part of their income. They also think pension plans (46%) and 401K-type plans (43%) will also play a major part in their retirement income. However, 30 percent indicate they expect some of their retirement income to come from part-time work. Respondents expect only 9 percent to come from inheritances, and 11 percent from other sources. (3) 4. Retirement planning is further complicated by a turbulent economy. With unemployment over 8 percent, and US corporate pension plans underfunded by $217 billion in 2008, industry experts know that there are more obstacles to a successful retirement than ever before. According to a 2011 survey by CareerBuilder, 76 percent of workers plan to rely on Social Security as a source of income in retirement, but only 35 percent of Americans expressed confidence in the future of Social Security. (5) 5. Rising inflation rates can quickly erode a retirement portfolio, making the fears a reality. At a 4 percent inflation rate, the cost of living will double in only 18 years. You must also take in to account the average number of years in retirement, which now approaches 20 years. In the 1980s, over 65 percent of Americans had a pension plan at work. But now, research shows that less than 18 percent have a pension plan—and most of those who do are government, state, and military personnel. (4) 6. Where our parents thought they needed their income to last maybe 10 to 12 years in retirement, seniors today can expect to be in retirement twice as long. In fact, the Employee Benefit Research Institute forecasts the duration for many could last 25 to 30 years, or maybe even 35 years. Attribute this trend to progress in medical practices, improved diets, exercise, and improvements in the standard of living. But the Census Bureau confirms that retirement plans that worked for our parents do not work for the current generation. Statistics show that more than 90,000 Americans are over age 100. Even more shocking, 2 million Americans are now in their 90s. (2) With all of these problems, what can individuals do to help themselves along the path of retirement security? Here are some ways to ensure you’ll have enough income to last your lifetime: Plan for the possibility of working a few years longer than the traditional retirement age of 65. Although most of us do not want to do that, it has become a necessity for many. Ramp up your rate of savings. Additional Seniorsite.com studies show us that 43 percent of Americans have less than $10,000 saved for retirement. We must utilize our 401K, IRAs, and Roth IRAs to increase our nest eggs. Consider insuring your retirement income against the risk of longevity and market uncertainty. There are guaranteed lifetime income products that can help to ensure against these risks. Also, people who are the primary income earners for the family should carry adequate life and disability insurance, and long-term care insurance to protect both their families and their own retirements. Make sure that your retirement plans are well-diversified and make use of asset-allocation strategies. Today we know the use of alternative investments may actually raise your returns and lower the risk. Map out your retirement strategies before you actually retire. Know where your income is going to come from and how you will continue to develop it. You can choose from such strategies as systematic distributions from well-allocated mutual funds or from managed payout funds. The use of variable or fixed annuities, with their many new guarantees, can also be beneficial in retirement planning. And keep in mind the required minimum distributions that you must begin to take out of qualified plans when you reach age 70½. Most importantly, seek the counsel of a trusted financial advisor. Individuals should work with a Financial Planner for help making the many important retirement planning decisions and determining the retirement income that fits their needs. A professional Financial Planner can keep up with new strategies, products, and tax laws that the average person cannot. With 10,000 people retiring every day over the next 20 years, it is never too late to begin planning. Seek help, come up with a well-thought-out plan, implement the plan, and enjoy a very successful healthy and wealth retirement. Sources: 1. Seniorsite.com 2. The US Census Bureau 3. The Employee Benefit Research Institute 4. Advisor One Magazine 5. Careerbuilder.com Survey, by Harris Interactive, January 2011 6. IRS.gov About Sheldon Weiner A founding partner of Egan, Berger & Weiner, LLC, Sheldon Weiner has more than three decades of experience in the financial industry. After graduating from the University of Maryland, and the Hartford Insurance Company School of Advanced Underwriting, he earned the LUTCF (Life Underwriters Training Council Fellowship), and also served as President of Creative Financial Programs, Inc. Weiner has more than 10 years of experience as a teacher and lecturer for various educational institutions in the area, and is an active member of the Financial Planning Association. He resides in Olney, Maryland, with his wife, Sharon, and their Doberman Pinscher, Simmy Simpkins. He has two grown children and three grandchildren. Weiner is active in his community; he has served on several boards of directors and has worked with a number of fundraising groups. He has also been an active member of the Masons, Eastern Star, and The Order of Demolay, where he achieved the rank of Chevalier. For more information, and to contact Weiner, send him an email at sweiner@ebwllc.com or call 703-506-0030 ×106. Securities and investment advisory services offered through ING Financial Partners, member SIPC. Egan, Berger and Weiner, LLC is not a subsidiary of nor controlled by ING Financial Partners.

Do Well by Doing Good: Raise Money for the Alzheimer's Association + Network with Colleagues

By Bryan Beatty, Partner
Egan, Berger & Weiner, LLC
Columnist, Be Inkandescent Magazine

Please join me for a day of golf to benefit the Alzheimer’s Association on Sept. 13, 2012, from 1-8 PM at the Reston National Golf Course in Northern Virginia. More details are below, and click here to register.

I am hosting this event because I have seen the effects of Alzheimer’s on many of the families I have worked with as a financial planner. In my experience, this is one of the toughest issues that we have to deal with, and I want to do something to make a difference.

Consider these statistics:

• 5.4 million Americans are living with Alzheimer’s disease.
• One in eight older Americans has Alzheimer’s disease.
• Alzheimer’s disease is the sixth-leading cause of death in the United States and the only cause of death among the top 10 in the United States that cannot be prevented, cured, or even slowed.
• More than 15 million Americans provide unpaid care valued at $210 billion for persons with Alzheimer’s and other dementias.
• Payments for care are estimated to be $200 billion in the United States in 2012.

Of course, golf outings are also great ways to make friends and build business relationships.

To help you network better while playing 18 holes, below are tips from golf pro John Byrne, creator of the UK website Into the Rough.

This impressive site aims to be the most comprehensive listing of golf courses, driving ranges, and hotels in the UK. “We offer the full package, from tee to green to a good night’s sleep,” Byrne insists, noting the site also provides golf articles and features.

Here’s to doing well by doing good—on and off the course!

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10 Tips to Networking on the Golf Course

By John Byrne
Golf Pro, Founder
Into the Rough

Golf is a game that offers a perfect place to network.

If you’re not close friends with your boss, then a game of golf could be a daunting prospect.

So we have created a tongue-in-cheek guide to help you network and play. Our hope is that it will enable you to get ahead—or, at least, avoid the sack.

1. Turn up on time. Who wants to be waiting round for an idiot who can’t turn up on time? It’s time they’ll never get back—and may never forgive you for.

2. Play competitively … Be civil but never spare your opponent when the chance is there—this is a competition.

3 …but never get carried away. If you suffer from “golf rage,” keep a lid on it or don’t bother playing. No one wants to see a maniac swinging a golf club into the turf.

4. Dress appropriately. Dress according to the golf course you’re playing on and the personality you either have, or want to convey. If you’re not an exuberant person, then coming dressed like Payne Stewart, who was known for his eye-catching golf attire, would not be advisable.

5. Don’t spend too much time on lost balls. Balls aren’t expensive, time is. And if you are trying to impress people, then their time is even more expensive. So do everyone a favor and hit another.

6. Don’t take too long on shots. How many practice swings do you need? Probably not more than three, so get on with it—before you get left behind.

7. Stay sober. Being drunk is generally a bad idea for obvious reasons. However, if your boss is okay with that and encourages you, then stay ahead of the curve and be more sober than him or her. This will mean you won’t feel guilty and will actually remember what happened.

8. Chat, but don’t gossip. No one likes a gossip; people love to gossip, but you don’t want a reputation. But you’ve got to be chatty even if it’s not in your makeup. Golf is a social game, so make the round easier by talking through it. (Ignore this rule if networking with computer programmers.)

9. Offer to pay. Even if you don’t intend to and know your boss or friends won’t accept it, offer to pay—in the round or afterwards in the bar. Hopefully they’ll say no, but either way you’ll have made a good impression.

10. Relax and be yourself. Have fun and let your personality show through. Be natural and all else will follow—and if you can’t get on with others, then at least win!

For more information about Into the Rough, visit www.intotherough.co.uk.

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Now, let’s make a difference in fighting Alzheimer’s!

When: September 13, 2012, 1-8 PM

Where: Reston National Golf Course
11875 Sunrise Valley Drive, Reston, VA 20191
Note: This is a soft-spikes-only course.

Schedule of events:

• Check-in: Noon
• Shotgun Start: 1 PM
• Dinner: 5 PM
• Awards: 6 PM

Fees: $150/golfer or $525/foursome
Includes: Green fees, cart, time on the driving range, professional scoring, refreshments, dinner, awards ceremony

Sponsorship Opportunities:

• Club Raffle: $1,000
• Hole-in-One: $1,000
• Hole Signage: $200
• Program Sponsor: $500
• Closest to Pin: $500 each (1 male and 1 female)
• Longest Drive: $500 each (1 male and 1 female)

Check should be made payable to: Bryan Beatty FBO Alzheimer’s Association

To register by phone, and for additional details, please contact: Bryan Beatty, 703-506-0843 / BBeatty@ebwllc.com

Note: All net proceeds from fees and sponsorships (after costs) will be donated to the Alzheimer’s Association.