One concern we often hear from our clients, time and again, is that they fear they will run out of money in their retirement years. Unfortunately, this fear becomes a reality for many people. Various circumstances can contribute to this, but most of them can be avoided with proper planning.
So let’s start with Number One: SAVE MORE
Invest as much as you can during your working years. This will help you build up a larger nest egg to help sustain you during your retirement years. Make sure you pay yourself first when you build this into your budget. Yes, you should be using one of these and abiding by it.
Number Two: SPEND LESS
If you spend less during your working years, you will have more room in your budget to save and invest. Just as importantly, if not more importantly, is keeping spending to a reasonable level during your retirement years. Check out one of our videos about the 4% rule to learn more about a reasonable spending level in retirement.
Number Three: INVEST APPROPRIATELY
This applies to both working years and retirement years. It’s very important to work with an advisor to ensure that your money is working for you and that you don’t have too many lazy dollars lying around as inflation passes. This is not a DIY project you want to take on.
Having a written financial plan can give you the confidence to know how much you need to save, how your savings should be invested, and how much you can spend to give you the best chance to achieve your goals without running out of money in retirement.