Planning your future is our top priority.
According to a National Bureau of Economic Research study, only one in three Americans in their 50’s has ever tried to plan for retirement. A third of those who try to plan admitted that they either gave up or failed miserably. The result: Barely 20 percent of pre-retirees have a useful plan for retirement.
However, making a plan is not that difficult when you seek out a wealth manager who can help you create a retirement catered to your specific needs. Remember, retirement plans are never written in stone, so you don’t need to get bogged down in details, and you don’t have to worry about getting it perfectly right for the next 20 30 or 40 years. Life is never really going to follow the straight and narrow path you envision and that means your wealth advisor, will have to help you adjust your retirement plan as changes occur in your life.
Here are five items we will help you include in your retirement outline:
- Manage your expectations. One common rule of thumb you may have heard of before, is that you’ll need 70 percent of your pre-retirement income to live a comfortable retirement. But remember, that’s simply a general rule and isn’t exact for everyone by any means. If you want to travel extensively or play golf daily, you might need more. But many people live on less especially if they tend to lead a more simple lifestyle.
- Make sure to adapt to changing expenses. Housing expenses tend to go down as we age, as our mortgage gets paid off and maybe we downsize to a less expensive home. Most other expenses also decrease, including clothing, recreation and insurance. However medical care is one expense that goes up and you must be ready to account for it. According to the Center for Retirement Research at Boston College, a retired married couple spends up to $260,000 over their lifetimes for out-of-pocket health expenses, not including long-term care.
- Increasing life expectancies. Surveys show that over half of pre-retirees underestimate how long they may live. According to the Social Security Administration, the average 65 year old male can expect to live to age 84, while the average female will last to age 87. We prefer you plan for more than that in your retirement planning. One out of five 65 year old males and one out of three 65 year old females make it to age 90. It won’t do much good to only plan for a retirement to age 84 if you live to age 90 or longer.
- Be ready for a reality that may look a little different. You may have a plan, but sometimes things don’t work out exactly the way you expect. For example, there is a large gap between when people think they will retire and when they actually do. According to a Gallup poll, the median expected retirement age is 65. But the actual retirement age is 61, because of layoffs and health issues that can cut a career short. This can have a drastic effect on the amount you have been able to set aside for retirement and how long the assets may last.
- Don’t be too proud to get help. First of all you and your significant other (if applicable) should start discussing your ideas about retirement. You might want to buy a condo on a beach somewhere and soak in the rays by the water daily, while your partner may simply want to settle down and babysit grandchildren. If the world of finance and planning your retirement seems too complicated, don’t hesitate to seek out and talk to a wealth advisor to assist you in trying to make your retirement dreams a reality.
At Nash – Hasty Investment Services, we’ll get to know you and your dreams, help you take inventory of your current financial status, cultivate those dreams and current finances into a workable plan, assist you in executing that plan into suitable investments and guide you along the way doing our best to help you make sure you’re still on track to pursue your retirement dreams, by reviewing your situation and helping you make adjustments along the way.