As people creep into the retirement "red zone" - those years just before or right after they retire - it becomes more important than ever that they find ways to keep their savings safe.

Because at that point, their retirement picture will change significantly only if they lose a lot of money, says Chris Bennett, co-founding partner of The Abbott Bennett Group, (www.theabbottbennettgroup.com).

"They are not going to change who they are," Bennett says. "But if they lose a bucket of money, they are not going to go out to eat, they won't travel, they won't be able to leave money to their children and grandchildren. They will end up having to make sacrifices."

In other words, they won't be living the retirement they envisioned all those years they were saving a nest egg.

Having a "safe money" strategy is key to a secure retirement, say Bennett and Michael Abbott, CFO of the firm. It's important to be able to create an income stream that the retiree won't outlive.

There are several areas you and your financial professional can focus on as part of an overall "safe money" strategy, Abbott and Bennett say. Here are two examples:

• Rate of return vs. sequence of return. The average rate of return on an investment can be misleading, they say. That's because in reality how well you hang onto your money depends more on "sequence of return." That is, exactly when do those profits and losses come about?

To see how that might work, imagine a 50 percent loss followed by a 50 percent gain. That would appear to average out to a zero rate of return. But that's not how it would look in your portfolio, Bennett says. If you have $100,000, a 50 percent loss drops it to $50,000. The market rebounds with a 50 percent gain. But a 50 percent gain on $50,000 just increases that investment to $75,000, so you've still taken a loss.

Now consider that kind of activity over the course of your retirement as you are also withdrawing money from your savings to live on. Depending on when market fluctuations happened, you could take major hits. That's especially true if the dips come early in retirement when your savings are at their peak, and the rallies arrive late when there is less left in the account.

"One big downturn and that money could run dry," Bennett says.

Abbott and Bennett say there are tools that a good financial professional uses that can help people reduce the risk created by sequence of return.

• Maneuvering toward tax-free income. "Whatever the tax rates may be in the future, taxes can be a drag on your savings and may adversely impact your retirement security," Abbott says. So it's important to consider the tax implications of how you hold your assets.

Even those Social Security benefits that retirees draw can be taxed, but they don't necessarily have to be, Bennett says. Once again, a financial professional can review strategies that could help reduce or even eliminate the tax on that monthly Social Security benefit.

"It's possible to have tax-free income in retirement," Bennett says. "Talk about being in control. Then you can just enjoy your retirement with your children and your grandchildren."

About Michael Abbott and Christopher Bennett

Michael Abbott has two decades of experience assisting retirees with their 401(k)s and pension plans. He is co-founder of The Abbott Bennett Group, LLC, an independent financial services firm, where he serves as CFO. He is a lifetime member of MDRT (Million Dollar Round Table), an association composed of the world's best financial services professionals, and a member of NAIFA (National Association of Insurance and Financial Advisors). He holds a Master of Estate Preservation designation.

Des Moines, IA (February 18, 2015) – Mothers Against Drunk Driving will testify in support of HF 186 by Representative Sandy Salmon, which requires ignition interlocks for all convicted drunk drivers.  A House Judiciary Subcommittee is scheduled to hold a hearing on this legislation at noon on Thursday, February 19, at the State Capitol.

"As a drunk driving victim and MADD volunteer, I call on the House Judiciary Subcommittee members Jones, Branhagen, and Olson to advance HF 186," said MADD Iowa Volunteer Linda Chapman. "My daughter and her friend were killed almost 11 years ago by a repeat offender drunk driver. If he had an interlock device on his 3/4 ton pickup truck, I firmly believe both of these young people would be alive today."

Ignition interlock legislation is MADD's number one legislative priority across the country and in Iowa. Due in part to similar laws passed in other states, drunk driving deaths have declined dramatically and at a better pace compared to the national average decline. New Mexico and Arizona have seen a 40 percent and 45 percent reduction, respectively, in drunk driving deaths since passing all-offender interlock laws. 

"Interlocks save lives. They allow convicted drunk drivers to continue with their daily lives as long as they don't drive drunk," said MADD National President Colleen Sheehey-Church, a victim of drunk and drugged driving. "We urge Iowa to join the growing list of states that recognize the effectiveness of interlocks for all offenders."

According to the U.S. Centers for Disease Control, ignition interlocks are effective in reducing repeat drunk driving offenses by 67 percent.  Since 1995 in Iowa, these devices have been required for all first-time offenders with a blood alcohol concentration of .10 or greater.  HF 186 would modify the requirement of ignition interlocks to include all first-time offenders with a BAC of .08 or greater who seek driving privileges following a DUI conviction.

Twenty-four states, including Nebraska, Illinois and Missouri, require these devices for all first-time convicted drunk drivers. New Jersey will become the 25^th state if Governor Christie signs a bill that passed the legislature earlier this month.

HF 186 follows the recommendations of the National Transportation Safety Board and every major traffic safety organization, including AAA and the Governors Highway Safety Association. 

Frank Harris, MADD Director of State Government Affairs, will testify at the House Judiciary Subcommittee hearing on Thursday. 

About Mothers Against Drunk Driving
Founded by a mother whose daughter was killed by a drunk driver, Mothers Against Drunk Driving^® (MADD) is celebrating its 35th anniversary by creating a future of NO MORE VICTIMS^TM. MADD is the nation's largest nonprofit working to end drunk driving, help fight drugged driving, support the victims of these crimes and prevent underage drinking. MADD supports drunk and drugged driving victims and survivors at no charge, serving one person every ten minutes through local MADD victim advocates and at 1-877-MADD-HELP. MADD's Campaign to Eliminate Drunk Driving^® will end drunk driving through increased law enforcement, all offender ignition interlock laws and advanced vehicle technology. PowerTalk 21^® is the national day for parents to talk with their teens about alcohol, using Power of Parents^®' proven approach to reduce underage drinking. Learn more by visiting MADD's new website at madd.org or calling 1-877-ASK-MADD.

Comptroller looks forward to honest discussion

SPRINGFIELD - Illinois Comptroller Leslie Geissler Munger released the following statement Wednesday in response to Gov. Bruce Rauner's Budget address:

"Today Governor Rauner offered a much-needed comprehensive approach to our state's budget and fiscal challenges. For the last decade state government has consistently spent more than it took in, borrowed money that it didn't have and 'balanced' the budget with accounting tricks. Today the consequences of those actions are coming due.

"I appreciate that the Governor delivered his budget proposal to the General Assembly without delay, providing the maximum amount of time for much debate before moving forward with the best financial plan for our state and its taxpayers.

"While there will be plenty of disagreement in the weeks and months ahead, it is abundantly clear that Illinois must change the way it does business and I am heartened to see a thorough approach to our fiscal issues. The Governor's proposal provides a solid starting point for discussion."

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