Even carefully laid income plans can go awry. So
be sure to guard against risks that can potentially deplete
your retirement stash.
Let's say you're a conservative investor and have call
your savings in lower-risk investments returning about 5%
annually. If inflation is running at 4%, you're actually
clearing only 1% return...and thus trading safety for the
potential to accumulate. That 1% cleared today will buy
even less in later retirement when inflation has also done
its worst to the price of food, electricity and everything
else you can't live without.
If you're married, be sure to consider income options
that can continue to pay beyond the death of the first spouse.
Better to live on a little less today than to leave nothing
for tomorrow.
People are living longer nowadays. Especially if you're
retiring early, spend wisely so you'll have enough for later
years. Remember, experts suggest that an optimal annual
withdrawal is about 4 percent of total savings.
As people age, they may need more health care. Some services
for instance those for long-term care, are costly and not
usually covered by Medicare.
Are You Nearing Retirement?
