Don't Drain Your Retirement Bathtub DrySubmitted by BCR Wealth Strategies on August 10th, 2020
Did you know that 70% of elementary school children have at least one living grandparent? And that 65% of seniors live for 30+ years after retirement?
The question of how long your money will last is more important now than ever before.
I think of it this way.
While you work, you fill your financial bathtub full of money. The faucet pours money in, and you drain some out for expenses. But the goal is to have more coming in than going out. That way, when it is time to retire, the tub is full.
But then the faucet turns off. Or it only allows in a trickle of income. Pensions, investment returns, annuities and social security still come in. But employment income stops.
And then, the retirement lifestyle kicks in. There’s more time to travel. Hobbies are now front and center! Family. Grandchildren. Exotic locales.
And that 30+ years of retirement life without employment income starts to look daunting. How do you make sure you don’t drain your retirement bathtub dry?
Don’t let it overwhelm you. Proper planning allows you to enjoy your retirement without risking outliving your assets. Planning should be a combination of how you invest, how you spend, and how you protect against catastrophic situations. If you aren’t sure that you or your advisor are covering your bases sit down with a Certified Financial Planner (CFP®) and ask them about your blind spots.