Interview with David Reindel: Part 1

As a retirement planner and author of Don’t Die Broke, David Reindel helps his clients plan for a secure retirement. His successful strategies have allowed many adults approaching retirement age to feel more secure knowing that their money is safely protected and ready to provide income in their golden years.

Question: At what age should one begin planning for retirement?

David Reindel: People need to begin saving for their retirement as soon as they can, because the longer you have, the more money you can put away; however, people can begin saving for retirement at any age, even within 10 or 20 years of retirement.

Question: You make a distinction between saving for retirement and investing for retirement. Can you explain this?

David Reindel: Sure. Investing for retirement means placing money in securities. People do this via many different plans, such as in a 401K, stocks, and mutual funds. I recommend saving rather than investing. In other words, I advise my clients to take the risk out of their retirement savings by putting their money in a vehicle that guarantees it will not lose value.

Question: Why is investing risky?

David Reindel: Risk is a poor security blanket for retirement, and investment involves risk. Many people take the risk because historically, it has yielded returns; however, I think that the economy over the last several years has demonstrated the true volatility of securities. When you put your money into securities, you are investing with the hope that it will make gains. When the stock market plummeted a few years ago, I know of many people who faithfully invested for their retirement and then had to put it off for a few years because the value of those retirement investments fell right along with the stock market.

Question: What is a better option?

David Reindel: I recommend insuring their retirement rather than investing. You insure many things in your life: your home, automobile, and health. You can also insure your retirement money.