Saturday, December 5, 2015

Another Risk to Consider - Longevity

Earlier in the year we reviewed the various types of risk you might encounter when investing - inflation, market, credit, currency exchange, default, etc.; we won't review them at this point.

There is one risk that has become more important for up and coming generations than those in the past - the risk of longevity. Living too long - lasting longer than your money - has prompted many financial planners to project to 100+ when determining "if you have enough to retire".

85 is now considered old, not 60 or 70. With exercise, decent diet and medical advances we all can anticipate a long life. The question arises: can we afford to live a LONG life?

Four tips to finance your antiquity:

- Start early - savings compound over time giving you a jump start. This is probably the most important move to make.

- Save more - saving 10% - 15% of your income would cover your retirement provides a good beginning. If you can, increase that number.

- Be more aggressive in your investing - a combination of stocks and bonds will appreciate over time. Increase the stock portion. If you are very nervous and insist on conservative investments, you must save even more!

- Work longer - plan on retiring at 68, 70, 75. Today's seniors are healthy, vibrant and mobile continuing to earn income well into their future. Do you see yourself among them?

Be $ Smart - start NOW to make sure your money lasts as long as you do. Call me for additional ways to save.