Planning Your Retirement As you think about all the ways you want to enjoy retirement, it’s important to create a financial strategy that will allow you to make the most of your money and other sources of income. So you can enjoy the lifestyle you envision, your strategy must also address potential events that could negatively affect your finances. Below are key considerations for your financial future.
Rising Costs
Protect Your Principal from Market Losses
While the U.S. has enjoyed relatively low in ation rates in the last decade, advances in technology and our standard of living have increased the cost of common expenditures includ- ing the price of cars, food and potentially most important – health care. Your budget should account for both necessary and optional expenses, and provide room for rising costs over time.
Markets go up and markets go down. But volatility during your retirement years can greatly impact your nancial strategy more than before. Negative performance is magni ed when you are also withdrawing funds for income. Your strategy should include nancial products that minimize or prevent losses to your retirement money due to downswings in the market.
Longevity
As we live longer and longer, our time in retirement often extends as well. That’s great news, but you’ll need to plan for up to 30 years without an employer’s paycheck. Make certain your strategy includes ways to maximize your money to go the distance.
Low Interest Rate Environment
During retirement it’s important for your money to continue to work for you. Low interest rates have made conservative growth options less attractive for retirees. Your strategy should strike an appropriate balance of protection for your money and opportunity for it to grow.
2
ACLRPMBR-OT 101422
Made with FlippingBook - Share PDF online