Quote:
Originally Posted by Michael G.
Have you notice when the subject comes up about retirement and savings in
tv, magazines or visiting your financial adviser, you're supposed to know these questions.
They want you to guess how long you're going to live ....WHAT?
They want to know how long your savings will last.....WHAT?
Both these questions for most people are impossible to answer entering into retirement.
How can we even come close to an educated guess?
Your Thoughts
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Yes, sometimes you must draw a line in the sand when it comes to setting a benchmark in planning for the future. Life expectancy, genetic disposition, family history and health are good indicators of mortality. However, when it comes to "guessing" how long you need retirement income, the use of a fixed indexed annuity with a guaranteed income withdrawal benefit takes the uncertainty out of the equation. This financial vehicle guarantees income to you (and your surviving spouse) for life, even if your balance goes to zero! A death benefit to non-spousal beneficiaries exists if a positive account balance is present at death.
Assuring that cost control measures for funding your health care costs are in place is one of the benefits of a Medicare Advantage or Medigap health insurance policy, supplemented by a stand-alone COMPREHENSIVE dental and vision plan.
When it comes to "how much", you should always maintain some liquidity for those months that your pension, social security, and the annuity doesn't measure up to your income needs. A realistic budget, taking into consideration the timing of your withdrawals and periodic increases in costs (inflation). Your individual history is usually the best indicator of future needs.