Overcoming 4 Challenges in Retirement

Overcoming 4 Challenges in Retirement

While you are working, you spend time accumulating assets so that one day you can retire. But after spending years participating in your employer’s 401(k) or contributing to your own savings account, the question is “Have you saved enough?” Once you retire, you will be on a fixed income for the next 15 to 20 years. Can your retirement plan overcome these four challenges?

  1. Longevity

When Social Security began in the 1930s, the retirement age was 65 and life expectancy was 58 years for men and 62 years for women. The new life expectancy for Americans is 78.7 years.  Does your retirement plan account for additional day-to-day expenses as well as the rising cost of healthcare?

  1. Inflation

Most retirement plans account for a 2% inflation rate.  According to the U. S. Bureau of Labor Statistics, prices have more than doubled since 1988. What cost $100 in 1988 now costs around $215. When you are living on a fixed income, inflation can be especially difficult. A good retirement plan takes inflation into account as well as the rising costs of living.

  1. Market Volatility

No one can predict or prevent market swings. However, if your financial portfolio has a lower volatility or risk, it will last longer when you start withdrawing income. At Financial Consulting Group we can review and test your portfolio against different market environments to ensure that your retirement nest egg will survive.  

  1.  Taxation

If you are in a high tax bracket, you must be especially aware of how your assets are invested. At Financial Consulting Group, our goal is to reduce or potentially eliminate taxes so that we can potentially add 5-10 years more of or more life to your portfolio.

Resolve to Retire Right

According to a TransAmerica Retirement Survey of Workers, only 14% of baby boomers have a written retirement plan. A proper retirement plan can offer you a risk reduction strategy, efficient portfolio management, and a tax-efficient withdrawal strategy. A sound retirement plan is one of the best investments you’ll ever make. At Financial Consulting Group, Inc, our advisors can help preserve your nest egg and protect you from the myriad of risks in retirement that can threaten the money you’ve worked so hard to accumulate.  As experienced financial advisors, we take pride in our ability to help clients simplify and improve their financial lives.

If you are wondering what steps are involved in creating your retirement plan designed to overcome these four challenges, book your free, no-obligation consultation with Financial Consulting Group today. There is no time like today to plan for tomorrow.