You’ve spent a lifetime saving for retirement.
It most likely started with a 401(k) plan in your 20s, and maybe you added an IRA when you got that big bonus in your 30s. You saved and you invested… you have done everything you were supposed to do.
So why don’t you feel more confident about retirement? Why don’t you know - as you move from accumulation to decumulation - if you’ve saved enough money to last the rest of your life?
Unfortunately, most people lack what they really need: A clear retirement income distribution strategy.
You see, financial planning is a lot like a football game. In the first quarter of our life, like a football game, we get educated. We spend the second and third quarter working and in the fourth quarter we transition into retirement.
And as we transition into retirement, we have one overriding concern: Have we saved enough money in the second and third quarter to afford to be healthy for the rest of our lives?
How Much Money is Enough?
It always relates back to money. Have I saved enough money? Do I have enough money especially now that the fourth quarter is getting longer and longer?
In 1900, the average life expectancy was 47 years old. When Social Security was introduced in 1936, the average life expectancy was 59. In 2021, according to the Morbidity & Mortality Weekly Report, the life expectancy is 73.2 years for a man and 79.1 years for a woman. Incidentally, this is a recent drop, largely due to the pandemic and COVID-19 deaths.
The International Longevity Center estimates there are about 50,000 Americans that are over 100 years old. This number is expected to be more than 800,000 by the middle of this century.
So, what can you do to address that you don’t outlive your savings? Develop a plan.
Planning Ahead
At Phronesis Wealth Management, we offer a retirement income strategy designed for the rest of your life because the last thing you want during retirement is to see your principal balance dropping. Our goal is to help preserve that principal and potentially grow the balances through retirement.
Connect with us today to learn more about our planning strategy so that we can work together to help you feel more confident about retirement. Call our office in Severna Park at 410-647-6762 for a complimentary consultation or book a 15-minute introductory meeting online.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
Sources:
CDC, National Center for Health Statistics: https://www.cdc.gov/nchs/pressroom/nchs_press_releases/2022/20220831.htm