Retirement Planning When it comes to planning for retirement income, what you do don't know can definitely hurt you. Misconceptions, miscalculations, misunderstandings may all lead you to make short-term decisions that may lead to long-term financial problems. Did you know? You may need income for 30 years after you retire. Just how many years depends on how early you retire...and how long you live, as well as your individual financial circumstances. Of course, how long each of us will be around is something not one of us knows for sure. You could easily live until your mid 80's to 90's. If you are a 65-year-old male today you have a 50% chance of living to age 85. A 65-year-old female has a 50% chance of living to age 88 and at least one spouse of a 65-year-old couple has a 50% chance of living to 92. You could be spending more in retirement. It's not all fun and games (vacations, new homes, boats, etc.). Health care costs are on the rise. A a retiree, you may find that health care will become one of your biggest expenses. Many employers have found it necessary to cut back on retiree medical benefits. Medicare and Medicaid may face major funding challenges. The risk posed by uncovered health care expenses is so substantial that health insurance itself must be seen as a pillar of retirement security along with pensions, personal savings, and Social Security. You need to get pay raises in retirement. How much? Enough to double your income. Why? Because even if inflation averaged just above 3% over 25 years, it would take roughly double the amount of money to cover the same expenses every 25 years. You could be invested too conservatively. Studies show that a "conservative" portfolio (20% stocks, 50% bonds, and 30% short-term investments) with a withdrawal rate of 5% has only about a 50% chance of generating income at age 90. And, if you are the one-in-four who will live to age 95, a conservative portfolio only has a 10% chance of generating income. Asset allocation and investment selection cannot be ignored as a powerful element of lifetime income planning. However, note that asset allocation does not ensure a profit or guarantee against loss. Don't leave your cash flow and retirement income to chance. There's no time like the present to work with us in creating a sound retirement income plan for the next chapter of your financial life. Call today!