Jonathan Gassman March 2009 Newsletter

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Copyright 2009 Page 1

5 Minutes on the Couch +5 Minutes on the Couch +10 Minutes in the Library =10 Minutes in the Library =A Plan for the Information AgeA Plan for the Information Age

Heres a quick quiz on a basic financial concept. Do you know the answer? According to the Urban Institute, what percentage of American workers do not retire on theirown timetable, but rather are forced into retirement due to layoffs, illnesses or injuries?

a. 19 percent b. 26 percent c. 37 percent d. 43 percent

Financ i a lF inanc i a l L i t e r a c yQues t i onL i t e r a c yQues t i onAn swer on pa ge 6

CREATIVE We a l t h M a x i m i z a t i o n S t r a t e g i e s

CREATIVE We a l t h M a x i m i z a t i o n S t r a t e g i e s

Jonathan Gassman, CFPGG && GG PLANNING CONCEPTS, INC

9 East 40 th Street, Suite 1500 New York, NY 10016212-221-7067 Fax: 212-302-6486 E-mail:

[email protected]

I n s u r a n c e I n v e s t m e n t s

Pens ion E s t a t e

Employee B e n e f i t s

March 2009

A dynamic economy is one in which human and physical capitalare chasing new opportunities, not holding onto lost causes.

- Arnold Kling

Want to put your mind at ease about the current financial

turmoil? Here are two perspectives that may help you getout of todays funk and on to better things.

5 Minutes on the Couch:Letting Go ofPresent-Event Bias

Here is a brief excerpt fromrenowned investor Warren Buffett,in his Chairmans Commentssection of the Berkshire-Hathaway 2008 annual report,released February 27, 2009, assessing the economicevents of the past year:

By the fourth quarter, the credit crisis,coupled with tumbling home and stock prices,had produced a paralyzing fear that engulfed thecountry. A free fall in business activity ensued,accelerating at a pace that I have never beforewitnessed. The U.S. and much of the world became trapped in a vicious negative-feedbackcycle. Fear led to business contraction, and thatin turn led to even greater fear.

A vicious negative-feedback cycle. Doesnt thatseem to describe all the economic news these days? Badnews causes fear, which leads to more bad news. AsPaul Sullivan writes in a February 6, 2009 article in the

New York Times , (Its Not Just the Money, Its theMind-Set),

Above all, peoples psyches are beingwracked by what behavioral economists callpresent-event bias . This is the belief that what ishappening now will always be. The same thinghappens in bull markets values always seem

to be rising until they dont but it is clearlymore painful when wealth is being destroyed.

Logically, we all know present-event bias isnt reality we know that things, both good and bad, will not staythe same forever. But when youre in the midst of atrend, it can be difficult to see beyond the prevailingsentiments of the moment. In both good times and bad,there is the danger of allowing the faulty premises of present-event biases to guide our attitudes and economicdecisions. When we do, the long-term outcomes are notusually favorable.

In fact, many of the issues at the heart of the currenteconomic crisis have been, to some extent, the result of present-event bias. Because of present-event bias

Both mortgage lenders and homebuyers felt theycould afford the risk of no-money-down, interest-only loans. After all, real estate always goesup.

Many stockmarket investors were lulled by themantra over time, the market always goes up.

A union job for a major manufacturer was thegold standard in blue-collar employment,because General Motors is always going to bethere.

When politicians began government-sponsoredpay-as-you-go social security programs, theywere sure that there would always be enoughworkers to bear the cost of providing benefits forthe retirees. After all, said German ChancellorKonrad Adenauer in 1957, People will alwayshave children. (Unfortunately for governmentplanners, many developed nations now havefertility rates well below replacement levels!)

If you recognize that making decisions based on

present-event bias isnt productive, whats a betteralternative? Well, for starters, apply Steins Law.

Herbert Stein was an economics professor andgovernment advisor to presidents Nixon and Ford (andalso the father of entertainer/commentator Ben Stein).


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He put forward a simple statement about economictrends If something cant go on forever, it will stop.Put another way, present-event status will end whensomething cant be continued. If banks cant expandtheir lending because there arent reliable borrowers,they will stop lending. If people cant afford over-pricedhousing, they will stop buying. When big corporationscant be profitable in a competitive marketplace, theywill cease to exist. And if there arent enough workers to

pay the cost of Social Security, it will go broke.In hindsight, its relatively easy to apply Steins Law

to explain how and why past events changed from boomto bust. But can you use the same logic in a forward-thinking manner, to determine how and why the bustwill end and prosperity will return? If you break freefrom the group psychology that creates present-eventbias and take a broader view of history, somepossibilities emerge.

10 Minutes in the Library: Going Post-Industrialin the Information Society

More than 30 years ago, some historians, economistsand sociologists began questioning whether the currenteconomic realities could continue, and if not, whatwould happen when they stopped.


In 1973, Daniel Bell analyzed the contrasts betweenthe industrialized economies of theUSSR and the United States inThe Coming of Post-IndustrialSociety . Bell not only saw thecentrally-controlled collectivistSoviet model as unsustainable, but also correctlypredicted the attributes of a post-industrial U.S.economy: globally interconnected financial systems;international trade imbalances; and the decline of themanufacturing sector.

Peter Drucker, in his 1989 book, The New Realities ,highlighted what he saw to be the major cultural shifts inthe 20 th century. In 1900, farming was the still largestpart of every nations economy, even though theIndustrial Revolution had begun 100 years earlier. Bythe end of World War II, manufacturing had completelysupplanted farming. This was the culmination of economic change in the twentieth century, and was thebasis for America's supreme position in world affairs.But Drucker also saw a post-industrial world coming,where manufacturing would be less prominent.

At that time, post-industrial was a vague term usedby economists in that it told what was passing, but didntidentify what was coming in its place. Since the mid-1990s, a consensus phrase arose for the coming neweconomic era: The Information Age.

James Davidson and Lord William Rees-Moggauthored several books on the seismic economic changesthey felt were likely to occur in the coming decades. Intheir 1997 book, The Sovereign Individual, Davidson

and Rees-Mogg stated that from its earliest beginningsuntil now, there had been only three basic stages of economic life in human history:

(1) hunting-and-gathering societies;(2) agricultural societies; and(3) industrial societies.

Now, looming over the horizon, is somethingentirely new, the fourth stage of social organization:information societies.

With the microprocessor and the Internet as thetechnological drivers of this new economic age, theforward-thinking commentators saw several trendsarising from the emergence of these new technologies.

There would be a transition from goods production tothe provision of services. This didnt meanmanufacturing would cease, only that fewer peoplewould be employed in manufacturing. (This mirrors thechanges that occurred in farming over the previouscentury. Today, less than 1% of Americans list farmingas an occupation, yet the general wealth of the farmingsector has not deteriorated. These few farmers produce

much more food than their predecessors of the previouscentury, and both individual farmers as well as the broadpopulation are better off today.)

With the move away from manufacturing as a coreeconomic activity in developed countries, the importanceof b lue-collar , manual work (e.g., assembly-linemanufacturing) would decline, with much of the lesser-skilled work outsourced. Professional and technicalwork (lawyers, computer programmers, etc.) wouldcome to predominate. Although this service emphasiswas predicted to impact a wide range of sectors, health,education, research, and government services are seen asthe most decisive for an Information society.

This Information Age perspective isnt new.Remember, a number of economic and sociologicalcommentators saw this economic shift coming threedecades ago. In various ways they said, the industrialsociety cannot go on forever. Things will change. Andwhile its rare for economists to accurately predict thefuture, its not like other people havent seen the samethings over the past 30 years. The decline inmanufacturing jobs, outsourcing, and the increasedglobalization of companies are not new trends. Theinevitable conclusion is the industrial society, and

many of the economic features that embodied it arequickly fading into the past.

The economic ramifications for the individual aresignificant. Some of the mainstays of the industrialeconomy like lifetime job security, company pensions,and government benefit programs are no longer financialcertainties. In varying degrees, change is shaping new

financial realities .

The Plan For the Politicians & the Individual When faced with change, there are two fundamental

responses: resist it or embrace it. The chosen response
http://en.wikipedia.org/w/index.php?title=The_Coming_of_Post-Industrial_Society&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=The_Coming_of_Post-Industrial_Society&action=edit&redlink=1http://en.wikipedia.org/wiki/Blue-collar_workerhttp://en.wikipedia.org/wiki/Blue-collar_workerhttp://en.wikipedia.org/w/index.php?title=The_Coming_of_Post-Industrial_Society&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=The_Coming_of_Post-Industrial_Society&action=edit&redlink=1


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often depends on how much one has invested in theexisting program, and how much benefit is offered bythe newer approach. For those whose livelihoods areconnected to the American automobile industry, thechange away from manufacturing is threatening.Workers who have paid into Social Security for 40 yearsdont relish the thought of seeing the benefits diminishor disappear just as they reach retirement. On the otherhand, for providers of Internet search engines and on-

line content, change probably cant come fast enough.

The Political ResponseSince many politicians have decided the economic

crisis requires government intervention, they also facethis resist-or-embrace dilemma. Because many of theirconstituents remain heavily invested in the industrialsociety, many politicians promise to save jobs, SocialSecurity, and the American way to capture their vote. AsArnold Kling, an ex-economist forboth the Federal Reserve andFreddie Mac, said in his November

12, 2008 commentary onwww.econlib.org , I can seewhere a bailout is a winningpolicy. The threatened industry is organized and visible.The alternative(s)are diffuse and unseen. But whilesuch an approach makes for good politics, Kling sayspolitical intervention may not be the best response to thereality of a changing economic society.


My guess, however, is that in a post-industrial economy, the necessary adjustmentsare too subtle and complexIn theory, wisetechnocrats could help guide workers in decliningindustries to appropriate re-training and career

development. In practice, technocrats are not thatwise. But it is much worse than that. Instead ofgiving the technocrats the mission of making theadjustment process more efficient, politicians willgive them the mission of delaying the adjustmentprocess and resisting the signals coming from themarket. Thus, the expectation that governmentshould help could have an ironic effect: the morethat the public asks government to relieve thedistress in labor markets, the longer it may takefor labor markets to adjust.

The Individual Response While it may be possible for select sectors of the

American economy to stave off changes that have beenthree decades in taking shape, its unlikely that the USeconomy will recover by reverting to anindustrial/manufacturing base. And for those who wantto step away from the gloom of a vicious negative-feedback cycle focused on present events, it makes senseto contemplate ways to embrace the financial changesthat may coincide with the growing influence of theInformation society.

In The Sovereign Individual , Davidson and Rees-Mogg suggested several ways in which the Information

society will impact individual economics. First,

most Information workers will operate as independentcontractors; the term job will mean a project ratherthan steady employment with a single employer.Second, employment opportunities will be global, ratherthan local or regional even as the worker never leaveshome. Third, the new paradigms in employment willleave individuals far more responsible for themselvesthan they have been accustomed to being during theindustrial period.

From these broad predictions, it is possible to makesome fairly specific personal recommendations.

Cash reserves are critical. In the typical Industrial-era career, workers could count on steady paychecks andgenerous benefits. This economic certainty made itpossible to operate on thin margins. Financial surprisescould be covered by cash flow, insurance or evenborrowing, as the repayments could be spread over time.

But when employment may be intermittent, andregularly changing, the need for a substantial cashcushion becomes much greater. The most stableInformation Age workers will be those who have the

financial wherewithal to comfortably bridge periods of unemployment (or perhaps time to work onentrepreneurial projects), instead of being forced to takewhatever is available.

You must own or control your insurance andretirement benefits. Employer-sponsored groupinsurance and retirement benefits are fast becomingrelics of the Industrial past, both for employees andretirees. 401(k)s instead of pensions and employee co-pays for insurance are part of the trend to decrease anemployers long-term financial commitments. At thepace these employer-sponsored plans are being

dismantled, the only people who will have pensions aregovernment employees and Congresspersons.SoIf its likely that you will be regularly changing

employers or working as an independent contractor, youcant count on employer benefits even stripped-downones. This is especially true during the periods you arebetween jobs.

Given the dynamics listed above, it seems likely thatfuture insurance and retirement developments will moveto two extremes government and individual programs.For those above the poverty line, government plans willoffer minimum benefits, with the individual having the

choice to add supplementary benefits at his/herdiscretion. As a result of this universal-individual model,the number of employers offering benefits will likelydecline. Anything above the minimum will be theresponsibility of the individual.

Since individual coverage (such as life and disabilityinsurance) is often contingent on your health status, itmakes sense to secure coverage as early as possible, withprovisions to keep the benefits as long as they will beneeded. Likewise, retirement accumulation programsshould be portable, and allow for deposits from a variety
http://www.econlib.org/http://www.econlib.org/


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of sources, not just wages.(Using this universal-individual model, heres a

possible configuration of medical insurance. The risingcry for universal health care can be seen as a direct resultof the erosion of Industrial-era employer-paid healthinsurance, and the increased technological costs of providing sophisticated Information-era medicine. Whilea government-sponsored plan may provide a base levelof coverage for everyone, the likelihood is that

individuals will also find it desirable to purchaseadditional coverages matched to their uniquecircumstances.)

Change your borrowing habits. The ability toborrow is determined by a lenders assessment of yourability to repay. For a creditor in the Industrial era, asteady job meant regular repayments. In the Informationage, lenders may look more at your assets and less atyour employment to determine your suitability for aloan. If your unsecured borrowing exceeds your cashreserves, you may be overextended.

Since you may end up working everywhere, live

where you want and rent until youre sure youreready to settle down. The real estate clich about yourhome being your biggest asset has changed. For many,after the collapse of real estate values, your mortgage isnow your biggest liability. In light of the commentsabove regarding the changing nature of debt, a largemortgage obligation could be an impediment to seizingfinancial opportunities.

These broad recommendations are not guaranteed tobe the perfect prescriptions for your specificcircumstances. But they reflect sound financial thinkingin any era, and if nothing else, serve to encourage you to

reconsider how many previous financial decisions havebeen shaped by present-event biases. A measured look athistory seems to indicate change is coming, and it willfavor those who are the best prepared. Those who makefinancial plans based on how it has always beenduring the Industrial era may find themselves behind thetimes.IS YOUR FINANCIAL PROGRAM STRUCTURED

TO EMBRACE A NEW ERA, OR IS IT STILLOPERATING ON PRESENT-EVENT BIASES?

The IRA: A Case Study in Present-EventBias and Government Response

As a way to encourage individuals to save forretirement, the Employee RetirementIncome Security Act (ERISA) of 1974 established the first IndividualRetirement Accounts (IRAs), whicheventually gave birth to other tax-favored retirement plans such as403(b)s, 401(k)s, SEPs etc. Thebasic format for these qualified

retirement programs is a tax deduction on deposits andtax-free accumulation; distributions taken in retirementare then taxable as ordinary income.

Over the past three decades, the ongoing logic forparticipating in qualified retirement plans has beenstraightforward. Because retirement is projected to be aperiod of lower income, distributions taken from IRAsor similar accounts will be taxed at a lower rate. Thus,receiving a tax deduction now (against a higher tax rate),

and paying tax later (at a lower rate) is a financialadvantage. At some time, every proponent of qualifiedretirement plans has intoned You should have an IRAbecause youll be in a lower tax bracket in retirement.

The financial advantage of IRAs was predicated onseveral present-event biases. First, that income tax rateswould remain the same. Second, that retirement livingexpenses would be less than while one was working.Over time, both of these variables have changed. Incometaxes have both increased and decreased for segments of the population. And retirement expenses, especiallymedical costs, have dramatically increased. In short,

what was thought to be always the same has changed.In response to these on-going changes, government

has continually tweaked the rules, trying to keep IRAsand other qualified retirement accounts beneficial forparticipants. But often, even the best governmentresponses are a step slow.

Take for example the recently implemented one-yearreprieve in required minimum distributions (RMDs). Inorder to capture some of the tax eventually due on IRAs,previous IRA regulations required individuals over age70 to make mandatory minimum withdrawals fromretirement accounts each year. But in December 2008,

lawmakers suspended this provision for 2009, hoping togive investors a chance for their accounts to reboundafter a brutal year in the markets, according to aFebruary 11, 2009 Wall Street Journal article (NewIRA Law Bewilders Investors). Instead of being forcedto sell investments to take their RMD, account holderswill be able to sit tight and wait for a possible recoveryof their account values.

However, retirees still had to take their RMD for2008 or face a stiff penalty from the IRS. Thus, in a yearwhen major US stock indexes had declines of 30% ormore, account holders still had to sell out at low prices to

meet the RMD requirement. In other words, a one-yearsuspension of RMDs might have been more beneficiallast year instead of this one.

In addition, the one-year RMD suspension hascreated both aggravation and confusion for accountholders. Financial institutions holding IRA funds arescrambling to establish procedures for contacting RMDrecipients (some are contacting only those receivingmonthly checks, others not planning any contact untilApril, 2009, and still others are automaticallysuspending payments). Company administrators of



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401(k)s are trying to determine if they first must amendtheir plan documents. In addition to the unresolveddetail, there is uncertainty as to whether the reprieve willbe extended for 2010.

Because IRA policy is often present-event driven,more changes and more uncertainty seem likely inthe future. (Although assuming that government willalways be a step behind might be a present-event biasas well. Maybe one day, the politicians will get it right in

advance.)

Long-Term Care InsuranceContinues to Change Is Now the Time to Buy?

Historically, the currentgeneration is the first to fullyrealize the social and financialimpact of increased longevity. Inthe old days, when elderly

people got sick, they often died. Today, because of medical advances, sickness and infirmity are typicallynot fatal. Instead, the result may be a diminishedcapacity to execute some of the activities of dailyliving*. Thus, the expanding need for various long-termcare services.

The financial cost of a long-term care situation can bedevastating to family finances. This is especially true fora surviving spouse, since the need for long-term care ismost likely something that will occur in retirement,making it unlikely one can recover the financial cost byworking. This situation is precisely the type that is best

addressed by insurance, where one can limit theirindividual financial exposure by spreading the risk amongst a large group of people.

*Activities of daily living include: bathing, continence, dressing, eating,toileting, transferring in/out of bed or wheelchair.

Brief History of Long-Term Care InsuranceLong term care insurance (LTCI) is a relatively new

insurance product. The earliest policies, introduced inthe 1970s, covered only nursing home care, and weredesigned to be compatible with Medicare. In the 1980s,a newer generation of LTCI policies recognized the needfor at home care and adult day care as well.

The changes in features and benefits, along withincreasing longevity rates due to new medicaltechnologies affected the pricing as well. Still, insuranceunderwriters couldnt predict how much health carecosts would rise over the next 20 years and how muchlonger Americans would live. Only recently have theseearly policies started to result in claims, and someanalysts believe insurers may have underestimated theirexposure. As a result, long-term care insurance continuesto change.


Current Trends in LTCIIn the January 5, 2008 issue of the National

Underwriter , an insurance trade publication, Vivian P.Gallo, a long-term care specialist from Hartsdale, NY,notes some trends for LTCI in 2009 and beyond.

Gradual tightening of underwriting criteria.The goal of any insurance company is to accuratelyassess the risks. In long-term care insurance, thiswill mean more face-to-face interviews at youngerages, and making a familys medical history aroutine part of the underwriting and eligibilityassessment. According to Gallo, this will result infewer people being eligible for LTCI coverage.

Rate increases. Some LTCI policies haveprovisions that allow for rate increases at specifiedtimes in the future, should claim history indicatethe need. Gallo reports these increases, mostly onolder contracts, have ranged between 2% and 24%.

Additional government incentives and employerprograms. To encourage consumers to obtain thecoverage, both state and federal governments haveconsidered additional tax credits for qualifyingpolicies. In addition, insurance carriers are lookingat new versions of employer-sponsored groupcoverage, which can offer simplified underwriting.

Limited benefit periods. Some versions of LTCIprovided unlimited benefits. But as Gallo notes, itis apparent that the unlimited liability created bythe lifetime benefit option is far too unpredictableto be reliably priced. The move to defined benefitamounts should mitigate against the need forpremium increases

Hybrid policies. For consumers, the purchase of LTCI presents several financial dilemmas. Thepublics perception of long-term care, according toWilliam Kelly, another LTCI specialist, is whenyou need LTC, it is too expensive, and when it isinexpensive, you are too young and seeminglydecades away from needing it. Additionally, thepremiums represent a significant potential lostopportunity cost if theres never a reason for aclaim.

As a result, some insurers are finding ways toblend either annuity or life insurance componentsto LTCI coverage. If not used for long-term careexpenses, the policyholder may recoup thepremiums as either a life insurance benefit, or anannuity accumulation/payment.

Taking Action TodayWhile the format of long-term care insurance

continues to evolve, the need to address the financialissues remains unchanged. Consumers, particularly olderones, cannot just wait for the dust to settle, then decideon what type of insurance to buy, as they run the risk of


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being ineligible because of stricter underwritingstandards.being ineligible because of stricter underwritingstandards.

Given the current landscape, the followingsuggestions merit consideration.

Given the current landscape, the followingsuggestions merit consideration.

Secure some coverage now while you stillqualify. If, in the near future, LTCI is expected tobecome harder to get and more expensive, aprudent response is to attempt to secure somecoverage now. It may not be a deluxe plan, butsome coverage at the current price is better than nocoverage (because of your health) and/or higherpremiums.

Secure some coverage now while you stillqualify. If, in the near future, LTCI is expected tobecome harder to get and more expensive, aprudent response is to attempt to secure somecoverage now. It may not be a deluxe plan, butsome coverage at the current price is better than nocoverage (because of your health) and/or higherpremiums.


G & G Planning Concepts, Inc. (G&G Planning Concepts) is a Registered Investment Advisory Firm regulated by the State of New Yorks Office of the Attorney General, Securities Division. G & G Planning Concepts is limited to providing investment advisory services to residents of New York and in other s tates where the firm is registered or is exempt from registration. The purpose of this newsletter is to provide general information to the public and provides contact information for G & G Planning Concepts. G & G Planning Concepts does not render or offer to render personalized investment advice through this medium. The information provided herein is for informational purposes only and does not constitute individual financial, investment, tax, accounting or legal advice. The information contained herein does not constitute a distribution, an offer to sell, or the solicitation of an offer to buy securities. Investment advice can only be rendered after delivery of G & G Planning Concepts disclosure statement (Form ADV Part II) by G & G Planning Concepts and after the proper execution of an investment advisory agreement between a client and G & G Planning Concepts. Investment Management is long-term oriented. General investment, financial planning, or other information shown herein is for illustration purposes only for review and consideration. Any strategies that you consider implementing or changes in your financial situation should be brought to the attention of your professional Investment Adviser.

If it is financially feasible, purchase coveragethat can be paid-up after a certain period . SomeLTCI carriers offer plans that require premiumpayments for a specific number of years (a typicalarrangement is 10 years). This approach givespolicy owners both a fixed cost and a securebenefit. Of course, the premiums for this policyfeature are higher on an annual basis than policiesbased on a lifetime of premium payments. Butchoosing a paid-up feature effectively eliminatesany future financial surprises in your coverage.

If it is financially feasible, purchase coveragethat can be paid-up after a certain period . SomeLTCI carriers offer plans that require premiumpayments for a specific number of years (a typicalarrangement is 10 years). This approach givespolicy owners both a fixed cost and a securebenefit. Of course, the premiums for this policyfeature are higher on an annual basis than policiesbased on a lifetime of premium payments. Butchoosing a paid-up feature effectively eliminatesany future financial surprises in your coverage.

If you cannot make the cost of long-term careinsurance fit your budget, at least make sureyou have a life insurance program designed tolast your entire lifetime. Heres an excerpt fromthe State of New Yorks long-term careinformation web page ( http://www.ins.state.ny.us/

If you cannot make the cost of long-term careinsurance fit your budget, at least make sureyou have a life insurance program designed tolast your entire lifetime. Heres an excerpt fromthe State of New Yorks long-term careinformation web page ( http://www.ins.state.ny.us/ lntmcare.htm ) in the section titled How else can Ipay for long-term care services?

A life insurance policy may offer the opportunityfor a loan or withdrawal of the cash value. Inaddition, a person who is terminally ill mayarrange for an accelerated cash lump sum deathbenefit from his life insurance company or for acash lump sum (called a viatical settlement)from an outside firm. (Note: not all life insurancecompanies offer an accelerated death benefitoption). These cash lump sum benefits are paidin lieu of the policys death benefit.

(Note: Because the greatest likelihood of needing long-term care services is at the end of ones life, any lifeinsurance program must be structured to be in-force atthe end of ones life. Term life insurance does notwork.)

There may be several solutions to your long-termcare challenges. But even with some uncertainty in theinsurance marketplace, doing nothing is not a suitableresponse. The sooner long-term care registers in yourfinancial consciousness the better.

FINANCIAL LITERACY QUESTIONAccording to the Urban Institute, what percentage of

American workers do not retire on their own timetable, butrather are forced into retirement due to layoffs, illnesses orinjuries?

a. 19 % b. 26% c. 37% d. 43%

Answer: c. For more than one in three Americans, theirsatisfaction in retirement could be strongly affected bytheir ability to respond to unexpected financialdevelopments. In other words, they need to have a goodPlan B, besides an ideal Plan A.

Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal or investment advice. Although the information has been gathered from sourcesbelieved reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with individual professional advice.

Jonathan GassmanG & G Planning Concepts9 East 40 th StreetSuite 1500New York, NY 10016Telephone: 212-221-7067Fax: [email protected]
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Jonathan Gassman March 2009 Newsletter

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