“Life is what happens to you when you’re busy making other plans.”
When John Lennon spoke those words, he might as well have been talking about retirement–because for all the planning and preparation, the unexpected often happens.
Some of those surprise are linked to increasing lifespans. If you were born in 1900, you weren’t likely to live past 50. Today, it’s not unreasonable to live to 90 years old!
That dramatic change creates an enormous challenge for retirement planning. It means that your savings should last for at least 20 years. In other words, longevity costs. Your future preparations should include a long-term strategy to offset that reality.
With the final stage in life now expected to last far longer than in the past, long-term inflation and market volatility also become far more threatening. The biggest concern of any retiree is to outlive his savings. But predicting inflation and economic shifts over a long period of time to avoid such a devastating surprise is quite difficult.
Another threat to one’s post-retirement stability is the sudden diagnosis of a serious illness. Medical expenses escalate quickly-especially if you suddenly need in-home support care. A disability can sap your tidy savings and retirement income faster than anticipated. And the accompanying emotional turmoil can make it even more difficult to make sound financial decisions.
These challenges pose significant threats to your security when you need it most–because your ability to work and earn money is restricted or entirely gone.
Even more so, they underscore the need for solid advice from a trusted expert. A savvy professional can determine how to maximize your investments to ensure that inflation does not devalue your savings-and that they last as long as you do.
And when markets rise and fall or unexpected life changes occur, a qualified adviser can help you keep an objective perspective. He can help adjust investments as needed to accommodate your changing needs.
In the end, it’s important to set realistic expectations for your future. Is your current lifestyle sustainable and in line with your retirement plans? If not, you can make changes now to increase your retirement income to compensate for the unexpected.
That might include changing post-retirement expectations, delaying retirement to generate more income, or adjusting your current lifestyle to increase retirement savings.
You can also downsize now. That will enable you to transfer money from your home’s equity into your retirement portfolio right away-and let it begin growing years in advance. And because a smaller home is less expensive to maintain, your monthly expenses will instantly decrease. Downsizing also means you’re not putting all your eggs in one basket; diversifying is always a wise move.
By cutting costs now and earmarking those extra savings for later emergencies and unexpected surprises, you can make a significant difference in your nest egg. You can begin the process of securing the kind of retirement lifestyle you want.
At Silverman Financial, we understand that increasing lifespans and unexpected changes make it necessary to receive ongoing advice and expertise. We give our clients what they need and deserve: a long-term relationship that continually adapts and aligns their needs with changing markets and unanticipated surprises.