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FEATURE –HHow long do you think you will live Do you think you’ll live until your late 70s? Are you confident that you will follow the path of your parents, who were in the mid to late 80s?
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The average joint life expectancy (men and women together) is around 88 years for over 49% of the population. A whopping 20% of Americans will live to be 95, and a recent study suggests 50% of people born now will live to be over 100 years old.
Depending on your unique perspective, this is either good news or bad news. It is good because many people want to live as long as possible provided they are physically and mentally healthy. However, living long life can be bad news if it puts you at risk of surviving your money in retirement.
It is important to note that these numbers are only averages. There are many exceptions to the rule, especially if you have excellent genes, have tried to stay fit and healthy, and managed stress properly. More and more people are hitting three-digit numbers, and you could very well be one of them.
Longevity is an option. Hence, creating a portfolio that will help you maintain your current standard of living in retirement over 30 years is a challenge. Having less money in retirement is a problem for retirees and early retirees. Almost all seniors know someone who beat the odds and lived longer than planned.
Many retirees and early retirees had someone in their own family who went through hardship because they ran out of money when they needed it most.
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The logical solution to not having enough cash to retire is to start earlier and save more. However, this is not always easy. Many people barely get by and do not have a lot of free money to earn a retirement income. You could fall into this category and worry about running out of money to build a retirement account.
How do you find money to finance a retirement plan?
Developing a mindset about saving and planning income is valuable at any age. Understandably, you may be on a tight budget due to your professional career. Or, you have family, medical, or debt problems that make saving difficult.
Fortunately, there are a few ways that you can free up cash or find the money you didn’t know you needed to fund a retirement plan. Here are three things you can do right now to free up cash for retirement.
Rescheduling
Look at all of your debts, including student loans and consumer debt. Maybe you can negotiate lower interest rates or pay off debts more slowly. For example, instead of paying more than the minimum amount on a debt, take that money and put on something like a dividend life insurance policy, retirement plan (depending on age), or dividend stocks.
If you pay off your debt too quickly, you will lose the opportunity to multiply that money.
Individual retirement account or 401 (k)
Use every advantage to contribute the maximum amount of money allowed. As you age, start moving a higher percentage into assets that are less volatile, such as annuities. Ask your financial professional and tax advisor if you could transfer your 401 (k) funds to a self-directed IRA and purchase an income pension.
Always keep this in mind with the bigger picture and look for licensed and authorized professional advisors.
Live a simpler lifestyle
If your car, large appliances, and other essentials last longer, they could cost you thousands of dollars to help finance your life after your career. Eat out less, never pay full retail, and look for every bargain you can find.
Regardless of your current financial situation, you can and should save money for a time when you are no longer receiving a paycheck. Starting early and being consistent, along with making small lifestyle changes, will help you avoid common mistakes and achieve a better lifestyle in retirement.
Here’s a word to the wise: before making any decisions about where and how to invest your retirement benefits, always consult a licensed and authorized professional.
Copyright © Lyle Boss, all rights reserved.
Lyle Boss is a member of Syndicated Columnists, a national organization that advocates a fully transparent approach to money management. As an asset protection instructor, he has helped thousands of seniors find their financial retirement options. Its clients include government employees, teachers, doctors, farmers and business people to name a few. Boss has been actively teaching advanced estate planning and wealth preservation for more than 20 years in locations like the University of Utah and in over 200 Senior Retirement Consumer Education Workshops throughout Utah, Idaho, and Wyoming. Boss and his wife Deanna live in South Ogden and St. George, Utah.
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