Page 79 - Ready Set Retire

Ready. Set. Retire!

I sometimes use Monte Carlo when I want to test an approach
or idea, but I never stop there. I always have a structured
income plan built on very conservative assumptions. In good
conscience, I can’t present a plan that relies on returns of eight
to ten percent to provide enough income and stability to base
a retirement plan on.

Myth #5: Taxes Are Inevitable

We have all been sold on the idea that the only two things
inevitable in life are death and taxes. It’s long been known by
certain groups that the latter isn’t true, and if you believe
science, the former is in doubt.

Unfortunately, when people believe nothing can be done, they
tend not to try. And when they receive validation of their
beliefs everywhere they go, they tend to not believe others who
try to tell them the truth. That’s why people believe the only
answer to their retirement plans is to double up in the market
and chase returns. It’s also why people continue to believe tax-
deferred defined contribution plans are their best option, when
clearly, they are not.

For example, if you had a choice to put your money into a plan
that may experience wide swings of gains and losses, produced
income of 3%-4% and may last the rest of your life 80%-90%
of the time, or a plan that could guarantee you would get a

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