TRiiP Plan Just the Ticket for Prudent Investors

Haven't heard of the TRiiP Plan? You aren't alone. The TRiiP Plan was an idea recently developed during a brainstorming session between a financial advisor and a financial services company executive. What they came up with is changing the financial landscape… especially for people who are retired. Most of us spend our working lives constantly in pursuit of that thing that's going to make us rich. Whether it's finding the next Apple or trolling through tons of information trying to find the absolute best mutual fund. Our focus is on growth during the run up to retirement… But for prudent folks, that changes once you hit retirement. You no longer have that big, regular paycheck landing in your account every other week. You may have lost your company health insurance or other benefits. You are now on your own and that can be a bit of a scary place. When future financial success falls squarely on your shoulders and there is no fallback. No, going back to work with the same earning potential. Smart people become a little more cautious. Sure you still want to get a high return. Sure you still want to search for the next big stock. That's being smart as well! You just temper it with the knowledge that making a BIG mistake can be a game ender, not a game changer. So your days of putting all of your assets at risk with the hope that in the end it will all turn out well; that if I just stay in long enough, I'll be all right are over for the smart investor. Moderate, calculated risks can work well with a balanced approach to your retirement finances. You just want to avoid any circumstances that could completely unravel what it took you decades to save. It's "avoidance of risk" where the TRiiP Plan really shines. It is really the only all-encompassing product or idea out there right now that addresses almost all of the commonly experienced risks a retiree may run into during retirement. We all hope that our retirement will be problem-free but we know in reality, we are likely to experience a bump in the road here or there. As a retired couple, one of you is likely to live to a ripe old age (unfortunately, that's one of you… the average age in the U.S. for becoming either a widow or widower is about 59 years old). Because one of you is likely to live at least 30 years in retirement, the likelihood of unforeseen circumstances becomes almost certain. What are those unforeseen circumstances? It could be another sustained stock market down turn. It could be interest on your savings staying low for years to come or another economic catastrophe. The possibility of taxes going up to pay off the national debt seems almost certain. Many of us will experience major health issues that can deplete years of savings. Our future incomes are certain to suffer when we lose a spouse and we have to decide whether to give up our Social Security check, or our deceased spouses check, leaving us with 1/3 to ½ less Social Security income. These are just a few of the unforeseen circumstances that can cause your well laid plans to come to nothing. The TRiiP Plan goes a long way towards mitigating most of those unforeseen possibilities that can undermine your retirement lifestyle. TRiiP basically uses your current portfolio regardless of how you currently have it invested and integrates it with a TRiiP Plan qualified insurance policy. The beauty of this is that you do not have to make any changes to your current portfolio to get all of the protection that the TRiiP Plan offers. This allows almost anyone to be able to implement the TRiiP Plan, though you must first make sure the insurance policy meets certain criteria. The TRiiP Plan Insurance policy must meet several parameters:rn1. Mathematically Qualified—Integrates longevity parameters of affected partiesrn2. Economically Qualified—Incorporates economic parameters at both the micro and macro levels includingrna. Tax Ratesrnb. Interest Ratesrnc. Portfolio characteristicsrn3. Insurance Qualified—incorporates the necessary parameters of risk and guarantee There are just a few companies that offer all the necessary parameters to give you all the protection a properly structured TRiiP plan offers. Currently it is almost impossible to implement a TRiiP Plan without the help of a financial advisor well versed in the TRiiP concept. It may be as more and more people utilize the TRiiP Plan, some companies may make it easier use the TRiiP Plan without the help of an advisor. However, unless you are well versed in all of the above qualifications, it may always be advisable to utilize an advisor to maximize the benefits of the TRiiP Plan offers. If you are or soon will be retired and you consider yourself to be a prudent person, the TRiiP Plan should certainly be on your radar as a possible tool to protect your retirement assets and lifestyle.