How do I make sure that I do not outlive my saving?

The one big question asked by almost every baby boomer that has a nest egg is, ” Will my nest egg be enough to live on in my retirement?”

This is one of the initial questions in Greg Heiple’s new Book BalanceZone Investing. Although he puts it another way. “How do I make sure that I do not out-live my saving?”BalanceZone Investing by Greg Heiple

Greg is the creator of The Teeter Totter Principle which I have already mentioned on this blog as being an excellent tool for understanding and managing your nest egg.

BalanceZone is version 2.0 of the Teeter Totter Principle. It comprises a 214 page book that goes into some detail to explain what BalanceZone Investing is all about. Plus there are two software programs.

He talks a lot about navigating the “Investment-to-Retirement Road” and says that with an understanding of BalanceZone Investing and by using its tools you should be able to successfully navigate your way to retirement income success.

The software comprises two programs.

  • BalanceZone Investment Decision Skill Builder
  • Investment Statement Consolidator

The main theme you need to grasp is that you should always separate risk-based assets like equities from safe assets like bonds. Greg says you need to categorize your assets into two parts: safe savings and risk investments.

The Skill Builder is designed to help you learn how to manage the balance between the two categories over time. In the process of using the Skill Builder you will learn what risk tolerance you really are comfortable with especially when you see your nest egg reducing because you risk too much or the risk based results suddenly take a large portion of your nest egg simulating a stock market decline.

The Skill Builder does:

  • A great job of managing fear and wise buy and sell decisions.
  • It educates Baby Boomers on how much money they can take from their nest egg without depleting it.

Once you have built your skills using the Skill Builder you can then use the Investment Statement Consolidator to enter all the totals from your different investments into either the safe or the risk Account columns. It will then give you a current picture of your BalanceZone.

If that BalanceZone is not what you are comfortable with based on your Skill Builder training you need to then plan how you are going to adjust your investments to achieve the BalanceZone you want. You can either do this yourself or with your trusted financial planner

There are a couple of important points worth making here. Greg says it is important to watch the BalanceZone Balance NOT the $ Balance. I have also said on this blog that by watching the $ balance of a Portfolio the safe assets can hide the risk-based assets losses so you get lolled into a false sense of security.

Right now in Australia we are told the average loss on a Balanced Portfolio is only -6.4%. But I have shown that my friend’s portfolio is down 22.9% on his risk-based assets. This is what you need to find out about your portfolio.

The BalanceZone Skill Builder can be used for FREE at Balance Zone Investing. I strongly urge you all to try it and learn how to balance safe and risk-based assets in your nest egg.

As soon as I have the details on where to get the book and the software programs I will let you know.

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