Retirement Roadblocks: Fund Your Life
Fund Your Life: Seven Retirement Roadblocks Series
During this series, we will continue to highlight the roadblocks that may hinder your ability to live your best life during retirement, or what I like to describe as your "permanent vacation." Once we get to the age of 50+, we don't have much room for errors. It's essential that we don't make mistakes during the time leading up to our permanent vacation because we do not have a lot of time to recover once in it.
In the last discussion of retirement roadblocks, we focused on inflation and the rising cost of products. Inflation is having the same amount of money, but as the years go by, that money holds less power. Now we will pivot to focus on the importance of longevity.
Inflation and longevity are interconnected.
When it comes to retirement, longevity risk refers to running out of money before you run out of time.
The wealth you build must sustain you throughout your remaining years while also keeping up with inflation. Your income every year should be stepping up and increasing throughout the remainder of your lifespan. Accumulation of wealth is an easy process when you’re working throughout the years, but it's a much more complicated process coming down the stairs. It becomes difficult once you must live off and manage wealth as de-accumulation begins during your retirement years.
One of the most asked questions from clients is, “How do I not run out of money during my retirement years?” While already nervous, anxious, and worried about leaving years of work behind, the last thing we need to worry about is the possibility of running out of money.
On the bright side, after sitting down with clients and coming up with a plan to map out their funds, 7-9 months into retirement, I notice a major sense of relief.
Many of you all in this stage have been working for a long time and are ready to take the wealth you have built and use it to fund your permanent vacation. Most of us will live in our retirement for the length of time we have worked, if not more. That means the money we have built has to last the remainder of our lifespan. That’s why the longevity of your retirement fund is of the utmost importance, and you must make the right decisions along the way.
For those transitioning into retirement, celebrate this topic of longevity, but also realize that longevity means we must live economically.
My first job out of college was $14,800 back in 1987. Could you imagine that amount paying the bills now? Times have changed, and money is now even more connected to everything; we must have a conversation about the importance of money. Preparing for this retirement roadblock will give you the confidence and ability to transition into this new chapter of your life smoothly.
This is my gift! If you have any worries whatsoever or want to know how to maximize your life financially, book with me!
