Retirement Big Risk: Living Too Long

28 Jul 2015

A number of years ago, I saw a report in USA Today that listed what Americans fear most—such as fear of flying, of spiders, of divorce, and so on. The number-one fear, by far, was outliving their money.

No one is really concerned about living too long, but a great many are concerned about outliving their money. As more and more people live longer, active, and healthy lives, they may need to plan for three decades of continuing consumption after concluding their working years. In addition, most people have a list of interesting and exciting things that they intend to accomplish once they have the time and the freedom to do so. The reality is that the first decade of retirement can be pretty expensive.

This is the crux of the distribution considerations of retirement planning. Not only do you need to accumulate enough money, but you also need to develop the necessary strategies for using those resources. How will you withdraw your money in a tax-efficient manner so that you can achieve all your goals, while protecting yourself from the potential for volatile market conditions during the decades of your retirement? How do you do that with some modicum of confidence that you will not run out of money?

There are some great strategies for making that work, but they are multi-disciplined: No single idea or product will provide you that security. That’s why you need to be working with a professional who truly understands retirement income distribution and can help you to develop a plan.

Does your financial plan address this risk? Contact us for a no cost, no obligation consultation today to make sure that it does.

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Brad Berger
Brad Berger

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