Broker Check

Overcoming Your 5 Biggest Retirement Challenges

| July 10, 2018

You have worked hard all your life for the day you will retire. You have saved and invested in a variety of ways in hopes that you have enough money set aside so you will not outlive your savings. As retirement is getting close, your focus must now change. It is essential that you create a Retirement Income Planto convert your assets into income. As you do so, keep these five challenges in mind.

Longevity: A study by the Society of Actuaries in 2015 has shown that a 55-year-old man has a 76% chance of reaching age 90 and a woman of the same age has an 82% chance. The probability that at least one of them will reach 90 is 96%*. This means that you could spend as much time in retirement as you worked. Will your income last 30+ years?

Volatility: We can’t predict or prevent market swings. Events like 9/11 or the Financial Crisis of 2008 are always a possibility. With the globalization of the financial markets,the climate is ripe for greater volatility. Do you have a defensive strategy to deal with market risk?

Inflation: Inflation can cause your money to lose some of it’s buying power. $1,000 today will only buy $552 in 30 years at 2% inflation**. In addition, healthcare costs are one of the biggest expenses in retirement and they are increasing at 5+% per year***. Are your assets keeping up with inflation?

Taxation: If you are in a high tax bracket,you need to be especially aware of how your assets are invested. Some hedge fund and mutual fund managers may not be concerned about taxes when they are seeking profits. Mutual finds can create a tax liability even if you lose money on your investments for the year. Do you have tax efficient investments?

Leaving a Legacy: Leaving a legacy is important for many individuals. Do you have your estate plan set up to minimize taxation and maximize passing your assets to your beneficiaries?

For a complimentary consultation to review or create your Retirement Income Plan,call or email me at 562-879-9743 or

*Society of Actuaries ( Simple Life Expectancy Calculator (2015)
**Consumer Price Index (CPI), U.S. Department of Labor Bureau of Labor Statistics, 2015
***Healthview Services: 2015 Retirement Health Care Cost Data Report. Assumes life expectancy of 87 for the male, 89 for the female, and MAGI income level below $17,000