High Blood Pressure is often referred to as the silent killer of human beings. It has no obvious symptoms to indicate something is wrong. Many people don't even know they have it. It develops slowly over time and although it can't be cured, it can be managed. Your retirement plan has a similar silent killer. Continue reading to find out what it is.
How Long Will Your Retirement Last?
Let's assume you retire at age 62. There's a high probability that your retirement will last 20 years and possibly even 30 years. That's great news assuming you a retirement plan that was designed to last 20-30 years. Here's the deal...none of us know exactly when retirement will end but we do know approximately when it might. So for this particular example let's use a retirement of 30 years.
What Was The Cost Of A Stamp 30 Years Ago?
In 1990, the cost of a stamp was 25 cents. That same stamp today will cost you 55 cents. Without getting fancy with percentages it's plain to see that the cost has doubled in 30 years. Why is this important? The exact same thing will happen to your retirement income. The amount of money you need to retire right this second will essentially need to double over the next 30 years. If you need $50,000 per year to retire today, you will need approximately $100,000 to keep the same standard of living in the year 2050.
If you haven't got a plan to double your income in retirement over the next 30 years then, without realizing it, you have a plan for running out of money. The silent killer of your retirement plan is Inflation.
What To Do About It?
At retirement, your entire financial future essentially boils down to one binary question. Will you outlive your money or will your money outlive you? Everything else in retirement comes secondary to that one question. At 80/20 Financial, our mission is helping clients address that question. We do this by creating a retirement investing and spending plan that answers that question.
You Need A Plan
If you're still in the accumulation phase (pre-retirement) we can help you figure out where you need to go and how to get there. If you are retired or nearing retirement, we can plan an income which will outpace inflation and possibly leave a legacy to your family. The consultation is free and without obligation.
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Thanks for reading!
80/20 Financial Services is an independent Registered Investment Advisory Firm. Our focus is working with retirees, and we specialize in working with retirees who are approaching or going through the retirement transition. We are located in Ozark, MO but we have the ability to work with clients throughout the United States. Contact us today for help with your retirement needs.