Take Charge Of Your Future

When it comes to planning for retirement, financial advisor Allison E. Lintell says many people mistakenly believe that in order to reach their goals, they must take a lot of risk. They’re used to thinking in terms of risk or no risk, and that there’s nothing in between, says Lintell, who moved a year ago from Bank of America to Morgan Stanley, where she is a vice president. There are investment features to fit any need and any investor. There are ways to help protect against market volatility.

Lintell emphasizes that retirement isn’t what it used to be. She points out that we don’t have pensions to fall back on anymore. And most people are in retirement for 30 years. She suggests the following strategies:

Investments that pay a dividend
Lintell says you should get paid while you’re waiting. She focuses on a reasonable rate of return plus a dividend. For example: If a fund doesn’t perform well one year, the client may still get a dividend check. That can be regular income on top of potential for growth — which can be a nice total return on your investment. Of course, companies cannot guarantee a dividend and can increase, decrease, or totally eliminate their dividends.

Consider tax-free investments
There’s been a lot of negative press about the municipal bond market, but taxes will most likely go up — capital gains, estate taxes, and so on. More people are focused on tax-free opportunities, such as a portfolio of municipal bonds or tax-free mutual funds.

Make sure you won’t outlive your savings
You may want to take a look at various lifetime income strategies.

The investments/strategies listed may not be suitable for all investors. Interest in municipal bonds is generally exempt from federal income tax. However, some bonds may be subject to the alternative minimum tax (AMT). Typically, state tax-exemption applies if securities are issued within one’s state of residence and, local tax-exemption typically applies if securities are issued within one’s city of residence. Bonds are affected by a number of risks, including fluctuations in interest rates, credit risk and prepayment risk. Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Smith Barney Financial Advisors do not provide tax or legal. (858/729-5012, fa.morganstanleyindividual.com/allison.lintell) ANNAMARIA STEPHENS