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Saving for retirement and knowing the risks of investing

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    Kyle Harrington offers advice

  • Duration 4:46
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And many of us have moms were close to retirement if they're not already -- -- some good news a new Wall Street Journal report.

Showing lots of Americans actually are pretty good at saving for those golden years but -- this week's report of two billion dollar investment mistake.

At financial giant JPMorgan Chase a sobering reminder you should always know the risks when.

Investing so as we get ready for Mother's Day how can moms in their families prepare for tomorrow.

And beyond.

Pilot -- sounder and managing partner Harrington capital management.

How good to see you see you are still I have a few scenarios that what you do that by design.

-- scenario one your in your forties your fifties you've got one or two kids and in college media went high school which still expected these days and your mom is close to retirement if she's not already -- -- that limited income.

Depending on you.

You have a decent income.

But it's it it's strapped.

OK any way -- are safe for your own retirement.

Well you know it's interesting I mean we've done a recent study with the institutional retirement council.

Which is stipulated that the average 65 year old woman in this country 50% of them will live to the age of 88 years old.

As you can imagine you work forty years -- and then you're you're supposed to have saved for another thirty years right without work so you mean earnings right.

So I think what the issue is is is to protect and preserve earnings in a way so you have to figure out whether it be mutual funds annuities.

ETFs that can protect and preserve your money's so that you can provide for an aging mother for example.

Or the mother providing for herself we feel like we figured out that in the fixed indexed annuity world.

That you can -- start.

Putting away money in these annuity products that will provide a lifetime earnings stream.

As you wage and as your parents age so it's naturally -- -- -- but absolutely not in that scenario that would be the time to start engaging in these annuity products.

It doesn't have to be a lot -- villages every little bit counts out of your paycheck.

To preserve and protect your wealth going forward.

Okay let's take this scenario I'll let's say you are that mom be aging mom so called right or the grandmother in most cases your sixty years old you're still working.

You haven't really stopped yet and not the way for a comfortable retirement is you've been like most grandmothers you're helping your children who have.

Who have with their kids.

And you know help with the grandkids what do you think would be the best way for that person in that scenario to expedite their savings over the next five years so they can.

You don't have money for when he.

-- yeah I mean that that that say I'm a more difficult scenario right because you're now trying to put away money later in life and so.

At that major risk -- you want to kind of be if more conservative however if you're trying to.

Accumulate wealth and grow your earnings stream you're gonna take a little bit more risk.

So there's variable annuities which would be you're not in the fixed indexed -- world you're protected if the market goes down in the variable annuity side.

You were open to more of the upside gain in the stock market but you're not protected on the downside OK so I would say.

Start putting away money in a variable annuity product if you own some real estate at that age.

Maybe trying pay down some of the debt because if you're renting out that real estate that can be an income stream for yourself as you -- -- go into the retirement years.

End up before really go Kyle just a short answer I think -- -- so knowledge of what they could go on being here here's.

Meaning you speak about the immunities and this and that and some people are going what the heck -- talking about I know you always use the advice that you get a trusted advisors right and they need to ask you.

I wouldn't look for and that person you need to know how to -- you have to trust them how much money we have to pay them and also isn't it true that no matter what you never signed power of attorney for your finances to anyone you have to stay involved.

-- I would agree with that a 100% and you're it is your right with these annuity products and get a little complex and difficult to talk about within just a short period of time in terms of the segment but.

What I would.

Without question is is you have to assess and find a trusted advisor if you're not gonna do with yourself.

And the things you gotta look especially in these volatile markets we saw the JPMorgan debacle this week.

Right he saw the -- the Bernie Madoff thing so you really have to be careful.

In figuring out who that person -- spent some time to sit in meetings with them be proactive about getting to know them and where they are in their life.

And and you find somebody your local bank amid an -- more you know you and that you can ensure you can.

But I would definitely do my due diligence on figuring out.

Where people are in there in their career how long they've been in the business how committed they are to the business.

What -- track record is and you could find some of the -- to do some due diligence and no shortcuts no final line -- Harrington thank --

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