So you set up your retirement plan say ten or 15 years ago, it’s time for a checkup! The sooner you can make adjustments the better, especially if you are going to have to make some big changes in your plan. One important factor is we are living longer. Twenty years ago statistics said the average male could expect to live to age 80 and the average female to age 85. In recent studies, these numbers are age 88 for males and 90 for females. Now these are just averages, a good source which allows you to enter personal variables is livingto100.com. One you have a better idea of your life expectancy, you can calulate how long your savings might last and determine if you will fall short.
If there is a shortfall, then a thorough look at your portfolio is in order next. Maybe your being too conservative for your portfolio to last the additional time. That being said, we are not encouraging our clients to run out and load up on risky investments, but rather take a pro-active approach and find the right funds for your needs. If it looks as if you are going to be extremely short of your needs, you may have to consider downsizing to a smaller home or taking a reverse mortgage to compensate for the shortfall.
Another item to look at is your spending habits. You may have set up a budget at the beginning of your retirement, but ten or 15 years later, you have a much better idea of how much money you need. It is a good reality check for people to keep tabs on what they are spending their money on. Many people do not realize the money that is being spent on ATM fees and small items such as coffee or entertainment.
If things become tight and keeping up with your premiums for long-term-care insurance or any other insurance for that matter is becoming a problem, you may want to ask your children to help out. It would be more economical for your children to help you pay the premiums than to allow the coverage to lapse.
Contact us today if it is time for a review of your retirement plan.