That depends. How long will you live?
Financial advisors call this longevity risk. Basically, it’s the simple relationship embodied in a question that almost every hard-working person asks: “will my money last as long as I do?”
Have you ever considered the relationship between your time and resources? We are constantly asking ourselves if we have the time to accomplish the things we want. We become adept at estimating the probability of our success when we consider the time we think we have. Think of it this way—retirement is like a driving trip. As you plan the trip, you realize that you have no idea how long it will be. However, the length of the trip is critical as you consider how much to pack, how much money to set aside or even the condition of your car.
When it comes to planning our retirement, we probably have an idea of our ability or resources, but we are missing one key element: TIME. We do not know how long our money will need to last. We do not know how long we will need retirement income.
What can you do? Put simply, you need a plan that considers what to do when key variables are unknown. Are there ways to establish any kind of guarantee? You need a planner who understands complex distribution strategies, not to mention the risks that you may face along the way, risks like sequence of market returns, tax strategies, long term care and many more. At Goostree Financial Group, we help our clients plan for this trip every day.