Find Your Way to a

Wealthier Retirement

By Desiree Smith-Daughty |

April 2011

As the saying goes, “it’s easier to ask forgiveness than it is to get permission.”

Mike Steranka, CEO of Retirement Planning Services (RPS), disagrees. When it comes to retirement planning, he says, “I’d rather get the “What should we do” call, than the “Guess what we just did.”

As the economy shakes retirement plans, painful lessons are learned, and many are forced to defer retirement. One reason for that, Steranka says, is simple: “A lot of people, unfortunately, haven’t saved.”

Many people thought they’d planned well, but when the economy went into a tailspin, their retirement funds went too, especially those retirement portfolios that relied heavily on stocks.

And, with pension plans more the exception than the norm these days, it’s up to each individual or couple to handle their retirement planning. According to the advisors at RPS, the sooner you take control of those finances, the better.

The Team Behind RPS

RPS, located in Millersville just off of Route 97 on Veteran’s Highway, specializes in financial planning for retirees and those in pre-retirement, ages 45 to 85. The firm helps clients to discover where they stand and how much they’ll have to live on in retirement.

Founder, Mike Steranka is a financial advisor who established the company in 1994.  Helping people plan retirement for nearly 20 years, Steranka has been a money manager and an investment advisor representative for corporations, trusts, families and business owners.

President Jane Sinclair previously worked for Sinclair Prosser, an estate planning law firm. Now, RPS works closely with Sinclair Prosser, and Sinclair utilizes her expertise to address many of the health-related aspects of planning, including long-term care, annuities, life insurance and Medicaid. 

Brian Kuhn is a Certified Financial Planner. Kuhn leads educational seminars around the area, following in the footsteps of Steranka, who is well-known for hosting seminars that educate people on retirement planning.

“We provide a value-added service. We’re not just stewards of our clients’ money,” says Sinclair. At RPS, they conduct two to four meetings with each new client, allowing clients time to consider the options before setting up a plan.

The RPS team operates on the foundation that financial lessons should be learned now, rather than the hard way later, when it may be more challenging to adjust.

TOTB sat down with the RPS team to talk about what, based on their years of experience and recent economic events, everyone should know now in order to achieve retirement success later. 

12 Keys to a

Richer Retirement

• Keep a Healthy Estate: What may seem like a large, adequate estate can be quickly liquidated with just one medical incident. A proactive approach can protect your estate from being used up in case of an unexpected health undertaking.

• Manage Long-term Care (LTC): Once considered a “must have,” long-term care insurance is evolving. There are now policies that combine life insurance with LTC, leaving your beneficiaries the money if you pass. Bonus: premiums never go up.

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• Withstand Market Volatility: If the market doesn’t cooperate, will you have enough money? As many experienced recently, if the market goes down, the retirement savings you rely on could be wiped out in a matter of years. Planning that includes fixed annuities may help.

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• Max Tax-deferred Savings: The largest nest egg for the majority of Americans today is their 401(k) or IRA. But keep in mind: it still needs to be taxed. Don't count on receiving the full sum you see on your statement.

• Heed Financial Advice: Hindsight can be costly. Steranka says a few past clients have popped up again recently, in unfortunate situations. After not taking original advice, these clients now want to know what to do.  When your financial advisor gives you advice—take it.

• Revisit Your Plan: Good plans can go wrong. It’s important to review regularly and learn about new products that offer greater benefits, such as changes in life insurance. Also, beneficiaries change, new employee benefits are offered, and health events occur.

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• Gauge Risk Tolerance: Kuhn says, “Not everyone tolerates risk the same.” Taking more risk than you’re comfortable with and trying to ride it out is hard. You may become more risk adverse with age. Regularly reassess the risk you’re willing to take.

• Stay Actively Involved: Know what your accounts are doing: are asset allocations diversified, or correlated with each other? Are all portions of your portfolio moving in the same direction? Are you paying too much in fees?

• Develop Your Budget: Know what you’ll need to retire: analyze your expenses now and determine which ones will follow you into retirement. Then, evaluate your various sources of future income.

•  Align Your Financial Plans: Make sure your estate planning complements your retirement planning, and vice versa. Sinclair says, “If something happens, issues can arise if both are not taken into account and planned well.”

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•  Factor In Inflation: Use vehicles designed to adjust to inflation. Keep costs as fixed as possible and income flexible.

•  Negotiate With Your Spouse: Decide whether you’ll keep your mortgage payment or pay it off. For peace of mind, it’s vital to agree.

 

RPS emphasizes the necessity of setting goals. The firm helps clients stay on track, generally meeting twice a year: once for an annual review, and often a second time as needed. All clients receive a spreadsheet of expected income and a financial inventory binder for keeping statements and letters together.

Kuhn underscores the RPS view of value-added service: “As a service to our clients, we offer a “spring cleaning” to help them get their paperwork organized. It’s just one of the many things we provide our clients.”

To learn more about Retirement Planning Services, visit www.rps123.com or call 443-308-5200. RPS is located at 8530 Veterans Hwy., 2nd floor, Millersville, MD 21108.

 

Securities offered through Broker Dealer Financial Services Corp. Member FINRA & SIPC.  Advisory services offered through Investment Advisors Corp., an SEC Registered Investment Advisor.