Annuities
In today’s world, setting up a comfortable retirement is a more complex challenge than before. Unlike those who could rely on secure lifetime incomes from professionally managed pensions, today millions of Americans serve as their own retirement managers. Many people tend to make uninformed decisions planning for and setting up their nest egg. This could mean the difference between enjoying a comfortable retirement and not having enough money to support themselves for the rest of their lives. The overwhelming number of retirees that “reverse retire” is daunting.
Planning for a proper retirement can be daunting. We can help to develop retirement plans that you can work with and not outlive. What are the main factors to consider while thinking about what retirement plan is right for you?
Longevity
Many people underestimate their lifespan and risk outliving their assets. The facts indicate that half of the population may outlive the “average” life expectancy. A successful lifetime income plan helps prepare you for living into your 90’s.
Inflation
Inflation is one of the biggest retirement killers in America. Eroding the value of assets set aside to meet these costs. Even a moderate rate of inflation can have a significant impact on a retiree’s purchasing power. The anticipated longer retirements make it more important than ever that portfolios include investments with the potential to outpace inflation. One of our main goals when planning for retirement is making sure we outpace inflation.
Health Care Expenses
Knowing that 2 out of every 3 Americans will need some form of Long Term Care and the rising cost of health care coupled with inadequate coverage can be a big factor in using retirement funds too quickly.
Thanks to new prescription drugs and medical technology, people are living longer than ever before. This can be a good and bad thing. Living longer means more cherished memories, but also means our nest egg needs to be spread out longer.
A significant loss in the years just prior to and/or just after you retire can have a damaging impact on the level of income you receive over the course of your life. In fact, if a loss occurs earlier in life, there is also the chance that you have more time to recover (versus a significant loss occurring later in retirement). Why? Simply because a smaller pool of assets is left to sustain you throughout your retirement years.