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How Can You Make Your Money Last During Retirement?
It’s probably safe to say that many of us are concerned about having enough money to cover our retirement years. In fact, some surveys have shown that we are more frightened of running out of money than we are of dying. What can you do to help alleviate these fears?
Your first move is to create a retirement income strategy, and you’ll want to develop it well before you need to use it. While there are many ways to develop such a strategy, you may want to consider these three key elements:
It will take careful planning to put these three factors together in a way that can help you build enough consistent income to last throughout your retirement – which could easily extend two or three decades. And there’s no single formula for everyone. For example, while an annuity could offer lifetime cash flow and help you reduce your reliance on your investment portfolio, it also involves fees and expenses, plus lower liquidity than other sources of income, so it may not be right for everyone.
Fortunately, you don’t have to go it alone when taking all your retirement income factors into account. You may want to work with a financial professional – someone who can evaluate your individual situation and then recommend retirement income solutions based on your appropriate reliance rate, withdrawal rate and potential income sources. By getting the help you need and by following a suitable long-term strategy, you can ease some of the stress that comes from wondering if your life span might eventually exceed your financial resources.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
How Can You Make Your Money Last During Retirement?Short /Radio version:
PSA: How Can You Make Your Money Last During Retirement??
Your first move is to create a retirement income strategy. As part of this strategy, you'll
First, how much of your overall retirement income will come from your investment portfolio, including your IRA and 401(k)? These accounts are important, but you don't want to rely exclusively on them, as their value will fluctuate.
Second, how much can you afford to withdraw from your portfolio each year? Since this withdrawal rate is a key factor in how long your money will last, you'll want to make sure you don't take out too much, especially during the early years of your retirement.
And third, how many sources of income can you count on? You'll have Social Security, but you may require another income stream.
Answering these questions can help you create a strategy to ensure your retirement income will last – for as long as you need it.
This is (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone #).
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