As people get closer to the age when they hope to retire, traditional wisdom calls for moving into more conservative - safer - investments, such as Treasury bonds and many fixed-income mutual funds.

"The problem is, what is 'safe' for one person may not be 'safe' for another, given the amount of money in their portfolios, how their investments are allocated, and what their retirement lifestyle goals are," says  financial advisor Haitham "Hutch" Ashoo, co-founder with advisor Chris Snyder of Pillar Wealth Management, LLC, (www.pillarwm.com).

"Some investors believe Certificates of Deposit and U.S. Treasury bonds are safe investments because of their backing, but the income they generate is so low, they may not be safe in terms of producing the income you need for 30 years of retirement."

A better approach is to analyze how much investment risk you must assume to achieve what's important to you, says Snyder.

"Your lifestyle goals determine your risk level, and your portfolio should be an allocation of stocks, bonds and cash that correlates directly with the risk level you need to assume."

Snyder and Ashoo, co-authors of "Four Factors The Affluent Must Know To Avoid Financial Disaster And Secure Their Dreams," available as a free download at(www.pillarwm.com), offer these tips for building a portfolio you likely won't outlive:

•  Don't aim for earning a certain percentage rate simply because you consider it an acceptable one.

Once you've identified your retirement lifestyle wants and needs, you can calculate how much they'll cost. Subtract your guaranteed income from sources like Social Security and pensions, and the remainder is what your portfolio will need to generate, adjusted for inflation, for the rest of your life, Ashoo says.

"Setting a goal of earning a 5, 6 or 8 percent return doesn't work because the markets fluctuate each year and are unpredictable," he says. "It's better to evaluate inflows and outflows during retirement and adjust for inflation. That process helps determine how much money you'll need at certain points in your life, and the returns you'll need."

•  Market timing and chasing hot managers is not the way to build a lasting, long-term portfolio.

Modern Portfolio Theory, developed by Nobel Prize-winner Harry Markowitz, tells us that 90 percent of the return in your portfolio is based on the allocation of stocks, bonds and cash, Snyder says.

"The percentages you allocate between these asset classes is far more important than timing the market or chasing around for the number one fund," he says. "Wall Street prefers you spend your time focused on the wrong thing.

•  Don't automatically spend when your portfolio earnings exceed expectations.

When your portfolio is growing at a rate that gives you a good amount of confidence you won't outlive your money, are you safe to spend more when gains exceed your expectations?

"Everyone has different priorities - some may want to increase spending to enhance their lifestyle while others may take the opportunity to lower their risk even more, so they can sleep better at night," Ashoo says.

He and Snyder say clients in that situation this year have responded in varying ways. Some have paid down mortgages with the extra money, moved up their plans to retire, traveled more or lowered their portfolio risk.

"What you need to remember is that gains can be taken away as quickly as they appeared," Snyder says.

About Haitham "Hutch" Ashoo and Chris Snyder

Haitham "Hutch" Ashoo and Chris Snyder are co-founders of Pillar Wealth Management LLC, (www.pillarwm.com), of Walnut Creek, Calif., specializing in customized wealth management advice to affluent families. Their unique five-step consultative process for new clients ensures they have a deep understanding of clients' goals. With a combined 51 years of experience, they are the authors of numerous published works, have addressed thousands of investors nationwide, and have been interviewed on radio shows across the country.

If you always stop to read the fine print before signing anything, congratulations - your parents trained you well. If you don't, beware: Your signature could commit you to a long-term gym membership you don't really want, an apartment you can't afford or worst of all, paying off someone else's loan you cosigned.

Broadly defined, contracts are mutually binding agreements between two or more parties to do - or not do - something. It could be as simple as buying coffee (you pay $3 and the restaurant agrees to serve you a drinkable beverage), or as complex as signing a 30-year mortgage.

Once a contract is in force it generally cannot be altered unless all parties agree. And, with very few exceptions (e.g., if deception or fraud took place), contracts cannot easily be broken.

Before you enter a contractual agreement, try to anticipate everything that might possibly go wrong. For example:

• After you've leased an apartment you decide you can't afford the rent or don't like the neighborhood.
• Your roommate moves out, leaving you responsible for the rest of the lease.
• You finance a car you can't afford, but when you try to sell, it's worth less than your outstanding loan balance.
• You buy a car and only later notice that the sales agreement includes an extended warranty or other features you didn't verbally authorize.
• You sign a payday loan without fully understanding the terms and end up owing many times the original loan amount.
• You buy something on sale and don't notice the store's "No returns on sale items" policy.
• You click "I agree" to a website's privacy policy and later realize you've given permission to share your personal information.
• You buy a two-year cellphone plan, but after the grace period ends, discover that you have spotty reception and it will costs hundreds of dollars to buy your way out.

Cosigning a loan can be particularly risky. If the other person stops making payments, you're responsible for the full amount, including late fees or collection costs. Not only will your credit rating suffer, but the creditor can use the same collection methods against you as against the primary borrower, including suing you or garnishing your wages.

Still, there may be times you want to cosign a loan to help out a relative or friend. The Federal Trade Commission's handy guide, "Co-signing a Loan," shows precautions to take before entering such agreements (www.consumer.ftc.gov).

A few additional reminders:

• Ensure that everything you were promised verbally appears in writing.
• Make sure all blank spaces are filled in or crossed out before signing any documents -including the tip line on restaurant and hotel bills.
• Don't be afraid to ask to take a contract home for more careful analysis or to get a second opinion. A lawyer or financial advisor can help.
• Don't be pressured into signing anything. If salespeople try that tactic, walk away. (Be particularly wary at timeshare rental meetings.)
• Keep copies of every document you sign. This will be especially important for contested rental deposits, damaged merchandise, insurance claims, extended warranties, etc.
• Take along a "wingman" if you're making an important decision like renting an apartment or buying a car to help ask questions and protect your interests.
• Be wary of "free trial" offers. Read all terms and conditions and pay particular attention to pre-checked boxes in online offers.

Bottom line: Contracts protect both parties. Just make sure you fully understand all details before signing on the dotted line.

President Kenny Massey reports four years of solid growth

Indianapolis, Ind. - Modern Woodmen of America President W. Kenny Massey, LeClaire; National Secretary Denis P. Prior, Davenport; and all members of the board of directors were unanimously elected on June 30 by the fraternal financial services organization's 42nd National Convention. Massey has been president since 2005; Prior has been national secretary since 2009.

An organization with a democratic form of government, Modern Woodmen represents its members' ideas and concerns through elected delegates who participate in a National Convention once every four years.

Local residents Darcy G. Callas, Moline; David B. Emrick, Davenport; Gary L. Medd, Davenport; and Jerald J. Lyphout, East Moline; were elected to Modern Woodmen's Board of Directors. Other members elected to the board of directors were Albert Hurst Jr., Little Rock, Arkansas; Judge Robert C. Pollex, Perrysburg, Ohio; and William D. Keltner, Jackson, Tennessee.

Also elected were: Eugene A. Ortis, national adviser, Alexandria, Louisiana; Anthony W. High, national escort, Tompkinsville, Kentucky; Donald D. Wixom, national watchman, Nampa, Idaho; and Cary L. Mathes, national sentry, Parkville, Missouri.

Solid growth

More than 1,300 Modern Woodmen members and guests, including 190 delegates, from throughout the United States gathered at the JW Marriott in Indianapolis, Indiana, to attend Modern Woodmen's 2014 National Convention.

Massey shared Modern Woodmen's progress during the four-year period from Jan. 1, 2010, to Dec. 31, 2013, and reported gains in all phases of operation.

–  Assets increased 45 percent to a total of $13.4 billion.

–  Life insurance in force increased 8 percent to $36.3 billion.

–  Surplus increased 33 percent to $1.51 billion.

–  Total benefits paid to members increased 18 percent to $2.9 billion.

–  Fraternal expenditures grew to $77 million, a 10 percent increase.

Modern Woodmen has more life insurance in force than 90 percent of all life insurance companies in America.  The third largest fraternal organization in the U.S., in terms of assets, Modern Woodmen's A.M. Best Rating remains A+ (Superior) - the second highest of 15 ratings.

"Ten years ago our assets totaled $6.9 billion and today we stand at $13.4 billion," said Massey. "That's an increase of $6.5 billion, which makes us the fastest going fraternal organization in America during the past decade."

Massey explained that Modern Woodmen continues to exist to:

·         Help members in times of financial crises (especially after the death of a loved one).

·         Accumulate funds for a secure retirement.

·         Engage members and enrich their lives with fraternal benefits and activities.

·         Benefit communities through fraternal benevolence and outreach programs.

"Our mission statement reads 'to improve the quality of life for our members,'" he explained. "We live out our mission every day, it's in our DNA. It drives our decisions and actions as an organization."

Fraternal focus

In the past four years, Modern Woodmen's fraternal programs benefitted members and communities across the country.

• Fraternal benefits help members, their families and their communities in good times and in times of need. From disaster relief aid to scholarships to providing for orphans, members have a safety net of benefits.  In the last four years, Modern Woodmen gave $4 million in benefits to members.
• Modern Woodmen put $34.2 million into matching fund activities in the past four years. Matching fund activities allow members to show their support for a community cause or an individual in need.
• Through more than 99,500 chapter activities across the nation. Members and their families participate in social and volunteer activities.
• Through nearly 48,500 youth service club activities. Modern Woodmen children from tots to teens discover the benefit of helping others. Youth service club volunteers have given nearly 1 million hours of volunteer service in the past four years.

Modern Woodmen of America is a member-owned fraternal financial services organization. Since 1883, the organization has brought people together, supported families and strengthened communities nationwide. Modern Woodmen - touching lives, securing futures.