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You’ve probably seen articles that discuss how
much average lifespan have increased. Have you considered
how that impacts your retirement income needs? It used
to be that a person retiring at 62 or 65 had a rather
short life expectancy. That’s changed dramatically.
Now, if you’re in good health and retire at age
sixty-something your life expectancy may be an additional
15 to 30 years. That’s the good news. The bad
news is that you’ll need a lot more money to last
you through your lifetime.
A longer life expectance makes it critical that you
provide for not only an adequate amount of retirement
income, but also for income that you aren’t likely
to outlive. Deciding how to reach those financial goals
requires that you consider many variables. Your expected
income from pension plans and Social Security, your
tax bracket, the likely erosion of purchasing power
from inflation, and your feelings about risk are just
a few of the variables you’ll need to evaluate.
No single solution fits all retirees, and a blend of
investment products and strategies is often called for.
What can you do to improve your chances for retirement
security? As is true in many areas of life, careful
analysis and planning usually pays off. For a first
step, try to come up with a logical plan for choosing
investments and for reviewing the progress made in meeting
plan goals.
Working with a Professional Can Help
Can you create your retirement financial strategy without
outside help? Maybe, but relatively few people will
have the combination of knowledge, current information,
and time needed to create a sound plan. What to do?
Find a knowledgeable, trustworthy professional. Ask
friends relatives, and neighbors for recommendations.
From the recommended names, look for those from established
companies within the financial services industry. Be
sure to pick someone with whom you feel you can be comfortable
over a period of time.
Finally, ask lots of questions about the recommended
strategies. Get “plain English” explanations,
and ask for a written summary.
06/03 - BACK
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