By Paul Moffat, MBA, AIF®
There is one thing which keeps me awake at night: our clients' life expectancies!
Life expectancies keep growing and are being extended due to medical technology, improved lifestyles, laboratory research, healthy eating and the list continues.
Let me introduce you to Verdun Hayes. He is a Brit who is 101 years old and just completed a tandem sky driving trip two weeks ago.
Yes, you read the headline right. A 101 year old man just went sky diving in the United Kingdom with his son, grandson, great-grandson, and daughter.
To add to his accomplishments he is also a World War II veteran.
When he landed safely at the airfield the reporters asked him how he felt and his energetic response was, “I’m absolutely over the moon, it was beautiful.”
What does skydiving have to do with long-term assets?
Our lives are being extended and we need to continue to hold on to long term assets that have long term high expected returns. Assets which have the potential to fight increasing life expectancies and a scary word called inflation.
What is inflation? It is the rising costs of everything need to live.
Going into safe assets when you retire just because your father, mother, friend or co-worker did is no longer status quo.
How low are you going to be in the retirement phase of life?
When we go into retirement there are new estimates which are warning us of the fact that humans could be in retirement for 25-40 years.
This is a very long time. In some cases you could spend more years in retirement than years in the workforce or your career.
In some cases, like Verdun Hayes who is tandem skydiving at 101 years old, you could be in retirement very long.