A nightmare scenario is one of running out of money Beyond Retirement.
If you are fortunate enough to have built up a sizable portfolio during your working years, you will still need to be realistic about planning for the future. It is easy to overestimate your Nest Egg.
Frequently retirees failed to factor in those unforeseen emergencies, especially health-related issues, and other family and personal expenses that could blindside you. One can be assured that there will be financial emergencies coming out of nowhere it seems; that can seriously deplete your savings.
If you have a 401k plan or other savings plan, its vital to budget those funds properly. Develop a workable and realistic plan to meet your basic living expenses first; Not your Wants. Where ever you decide to “Park” your money, diversification is the key, not having all your “eggs in one basket.” Choose a trusted and experienced financial advisor to help you, if necessary, to maneuver the complex world of investing. According to some studies, a person retiring at age 62, will need in excess of $1 million dollars to cover living expenses over their lifetime Beyond Retiring, not necessarily in a lump-sum.
A million dollars is not a large sum considering the buying power of today’s dollars. This is why downsizing your spending, where you live, and how you spread your money around, is crucial to prevent going broke in your Retirement years. Any investments should be those that will enable your money to grow. If you have more going out, and little or nothing coming in, your Nest Egg will no doubt be depleted, and you will outlive your savings.
Take your time and make “Informed Decisions ” with your hard earned money. We know so many people who find themselves “Living Poor” Beyond Retiring, this is an unfortunate situation. There are options and ways to get out the financial ditch. More to come on this subject.
-WILLIE AND CLARA-