Vanguard's Roadmap To Retirement Security Review

Vanguard produces some of the best content on financial planning, investment and retirement topics out there.  While their literature is wonderful, I do not recommend Vanguard for personal financial planning though.  This is because Vanguard still is way too focused on simple asset allocation and portfolio advice as opposed to real, full-fledged financial planning.  In fact, I would not recommend any large company for YOUR unique financial planning simply because of the boilerplate nature of these firms planning recommendations.  If you want REAL financial planning you really need to go to a REAL financial planning shop, like that can be found through NAPFA https://www.napfa.org/, XY Planning Network www.xyplanningnetwork.com or Garrett Planning Network, garrettplanningnetwork.com.  In this just published piece, there are three main things I want to focus on that should help you with your own planning. 1.  Vanguard's model, based on 10s of thousands of projections, show a future 50/50 global portfolio providing 4% REAL returns over the next 10-20 years.   (Real returns mean NET of inflation)  Thus if you are banking on traditional returns of the US markets, say 10% a year for stocks, you should rethink that as way optimistic.  In fact, with valuations today being high on both the stock and bond side, it would be safer to assume what Vanguard's models show. 2.  Most people are NOT going to spend significant amount of time in nursing homes! I can't tell you how many people say to me their number one retirement worry is being destitute because of health care costs. It simply is not a reasonable concern. I am not saying throw caution to the wind, but Vanguard cites a study that only 7% of men and 14% of women stay in nursing homes more than 3 years.  3.  Lastly,  if you are a 65 year old married couple there is a very good chance one of you will live until you're beyond 90 years old.  You do need to plan for longevity, indeed. Which is why Social Security planning is so important, and tax planning as well. See a few of my videos on these topics below: https://youtu.be/ab-x2Nn_Uhw https://youtu.be/azafbEGUitI As always visit my website at www.heritagewealthplanning.com/blog for more info, my blog posts and podcasts.  Thanks! https://advisors.vanguard.com/VGApp/iip/site/advisor/research/article/ArticleTemplate.xhtml?iigbundle=IWE_InvResFrmwrkForDecsnMkgInRetmnt&sub=27675&st=S&EXCMPGN=EX:EM:FAS:010117:ADVISOR:DIGEST:EMAIL:ET:2017