The risk of a retiree outliving their portfolio is a concern, especially for individuals taking advantage of early retirement and retirees who have a family history of longevity
The solvency of retirement programs should be a concern for retirees. Social Security and Medicare are facing financial shortfalls that may reduce benefits over time.
Most people simply aren’t saving enough for retirement and have an enormous savings gap. Many people never calculate the amount of income they might need in retirement.
With the cost of tuition rising 5% per year on average, tuition at a four-year in-state college is an increasingly significant expense and should be planned for carefully.
Inflation erodes the value of savings and reduces returns. In order to combat the sometimes extreme fluctuations of the stock market, retirement portfolios should be well-diversified.
During the pre-retirement years an assessment of essential needs versus lifestyle expenses is often necessary.
As you near retirement, you may need guidance to determine a withdrawal rate that will be sustainable over a long retirement, as well as the sequence of withdrawals.
Take advantage of every opportunity to save for retirement. Fully fund your 401(k), 403(b), or 457 retirement plan and resist temptation to withdraw assets for short-term goals.
You need to keep long term debt to a minimum, keep revolving debt under control, and grow your net worth. Paying off your mortgage is a great step.
You will need to have a grasp of your vision of retirement before you can analyze your potential retirement income and expenses.