What’s scarier than death?
Running out of money, according to a recent poll reported by Forbes.
58% of those surveyed said that they were afraid of running out of money in retirement. Compare that to only 20% who reported being worried about dying.
Outliving your nest egg may be one of your own biggest retirement fears.
So today, I’d like to help you put this fear to rest.
I’m going to show you four guidelines to creating a financial plan that will last you a lifetime.
And I have an important favor to ask you once you’re done reading...
Shocking Announcement: For All Retirees…
How to Make Your Money Last a Lifetime
It may sound obvious, but the best way to put your financial fears to rest is to build a plan and take control of your finances.
Those with a financial plan are twice as confident about their future as those without one.
And you don’t need to be an expert to get started.
Here are a few basic principles to follow when creating a financial plan that will last you a lifetime:
#1: Keep Money Coming In
Staying in the workforce for even a few extra years will delay the date you need to start taking from your nest egg.
So it could be a huge help to making your money last.
Even once you leave the workforce, there are plenty of other simple part-time gigs that could earn you money and keep you stimulated during your golden years.
#2: Calculate a Safe Withdrawal Rate
The amount you regularly withdraw from your savings is one of the most important factors for longevity.
So your withdrawal rate is something you need to decide very carefully.
Many experts say it’s safe to take 3-4% out each year. But ultimately what’s best for you will depend on a number of factors, like the amount of your savings, your expenses, and any extra sources of income.
Keep in mind, you’re not locking yourself into this withdrawal rate for life.
During some years (like when you file for Social Security or if you receive an inheritance) it could make sense to lower your rate.
And on the other hand, it may make sense to take more if unexpected costs come up along the way, which is sure to happen.
#3: Keep Some Money in the Market
When it comes to keeping your nest egg intact, you can be too careful.
Many retirees make the mistake of pulling their investments to avoid any associated risk. But this can be a costly decision.
Even if you withdraw a modest amount from savings each year, it will eventually run out unless you’re maintaining adequate growth.
Remember: your goal is to make decent returns to keep up with inflation and taxes. So your best bet is to keep enough money invested to achieve this goal.
#4: Know Your Expenses (Reduce Where You Can)
Knowing how to manage living expenses is a key lesson for anyone to understand.
But when you live on a fixed income in retirement, it becomes even more important.
Get a grasp on what constitutes your basic living expenses compared to extra lifestyle expenses, like entertaining and vacations.
Keeping a close eye on your expenses will help you avoid the urge to overspend and ultimately draw down your savings too quickly.
Of course, life doesn’t come with guarantees. Even those with a solid financial plan could experience unexpected setbacks.
But drafting up a plan for yourself (and sticking to it) will drastically reduce your retirement fears.
Part of my job is to help you create this plan, so you can enjoy a happy and healthy retirement that you deserve.
I’ve got a favor to ask you...
Please give me a call to discuss your future to see how we can help you now and into the future.
I look forward to helping.