We have all lost loved ones, and many of them have left us way too early. At the same time, Americans are living much longer than they have in the past. Are you financially ready to live another 20, 30 or 40 years?
When Social Security began in the 1930s, you could start receiving benefits at the age of 65, but only about 50 to 60 percent of the population was expected to live long enough to collect.1 Now, if you are age 65, you could likely reach 84. Will your income keep pace with the rising cost of inflation?
Have you ever asked, “But what if I live to age 95 or even 100?” Ask yourself how you would like things to be if you were alive and healthy at 90 years of age. Certainly, you wouldn’t choose to be living with no money left in your name and in government housing.
So, how do you plan for such a thing? Here at iWealth we have been helping our clients for the past 15 years trying to get that answer straight. I consider myself a “Risk Manager.” We help our clients manage the risks associated with saving, investing and managing money. This doesn’t mean that we worry about buying Wal-Mart stock vs. Target. This means that we do our very best to manage the risks you have, and one of them is outliving your money.
I hear more of this comment than any when dealing with baby boomers these days, “Brad, I don’t need to be rich, but don’t let me be broke!” They’re saying, “But what if I live? I don’t want to be on assistance. I want to be independent.” We have helped many clients set up what will become their own pension plan, an account that they will never outlive.
Our clients work very hard to achieve retirement someday, but most don’t really know how much money they need set aside to retire successfully. They know they need to save, but how much, where and for how long? We help answer those questions for them. If you called my office today and said, “Brad, what is the number one thing I need to do today to have your office assist me in my longevity planning?” I would say, “I need you to list your current expenses.” By knowing how much you need to live on today, we can project your future income needs. Second, we would complete an inventory of all your assets and liabilities to help with your planning.
“Retirement” is changing. People are starting to act retired early and traveling more when they are young, but on the flip side they are working longer—and not just because they have to. It’s because they want to, to stay connected with society. So ask yourself, “But what if I live? How do I want things to be? Where will I be living? What will I be doing?” Then ask, “Is there enough money or pension income to do those things?” If you don’t know that answer, give our office a call, and we’ll help you determine that.
We live in the greatest country ever. Let’s be sure that we will be financially secure to experience a long life with our loved ones.
1 http://www.ssa.gov/history/lifeexpect.html
