Lots of people do everything right when it comes to saving and
investing, but still get blindsided. That’s because they
forgot to guard against risks that can potentially deplete their
retirement stash.
Let's say you're a conservative investor and have all 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 when you're retired and inflation has
also done its worst to the price of food, electricity and everything
else you can't live without.
If you are injured or die and do not have insurance, you put
your family's future at risk. That's because some or all of your
retirement savings may end up being diverted for immediate expenses,
leaving little for tomorrow. You may want to find out if your
employer offers life and disability coverages and sign up at your
next open enrollment.
Are You Saving For Retirement?
