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Outliving Your Money |
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Will you outlive your money? It's something you might want to start thinking about - if you haven't already.
A 2008 survey, conducted by the Employee Benefit Research Institute, found that only 18% of Americans are very confident they will have enough money to live comfortably in retirement.
For the rest of us, the 82%, the risks of outliving our nest eggs are real given our increased longevity, the insecurity of Social Security, a volatile stock market, and mounting inflation.
But before you start panicking, stop and take a breath.
There are steps to determine RIGHT NOW if your savings and assets will sufficiently fund your retirement years.
Step 1:
Begin by figuring out what your sources of income will be i.e:
1. Potential income sources (i.e. income producing real estate, inheritances, etc.)
2. Projected balances of retirement and savings plans.
3. Amount of Social Security income to be received.
Step 2:
You've gone through all of the above. Now add it all up and multiple by 3%-5%.
Will you be able to live on that amount per year?
If your answer is no, move on to the next step.
Step 3:
It's a disciplined retirement savings program you need to put into place.
In my years of counseling people I've had the opportunity to make many observations. One of them is that people do not put away the maximum amounts allowable per year. The funds are set up but nobody puts money in them!!!!
Don't be a part of this trend! A good savings plan that you stick with can go a long way to alleviating your fears and your financial conundrums.
This material is Copyrighted: CAIM LLC, October, 2008
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