I would like to share a story with you.

An accountant and his wife recently came to my office to prepare for their retirement in a few years. They had about $2.5 million in CDs and bonds, and they had figured out how much they wanted in retirement income. They presumed all was well. But my projection showed their portfolio in a death spiral by their early 80s.

“You know what that means, right?” I asked them. They risked running out of money.

“Yeah, it means I don’t believe it, how’s that?” the accountant said.

I showed him the numbers, and as a CPA he understood them, yet couldn’t quite grasp why this would be happening.

“Have you ever seen Jurassic Park?” I asked him.

“Sure. Dinosaurs gone bad.”

“Right. Remember the scene where the boy tells the archaeologist he wouldn’t be afraid of a raptor?” I asked. “The guy shows the kid a petrified claw and demonstrates how a raptor could shred him to pieces. But then he explains that the raptor that would be staring him down wouldn’t be the one he’d have to worry about. In fact, he wouldn’t have to worry about him at all. See, Velociraptors hunt in packs and it’s the ones to the sides that are going to kill you, and you’re never going to see them coming.”

The CPA furrowed his brow.

“You were scared,” I explained, “because you saw that market risk in front of you, staring you down. So you put all your money into CDs and bonds so you wouldn’t have to worry about market risk. But off to the side—and I don’t think you see it coming—are inflation and longevity as well as other risks that may kill you.”

As you plan for retirement and venture forth into Distribution Land, you will face perils. Don’t be afraid. Be prepared. Visit www.mysecondopiniontoday.com for a free consultation and advice on if you truly are prepared with your current financial plan.