Summertime seems to always bring a new shark attack movie. This summer is no different with 47 Meters Down. The basic plot of the movie has divers in a cage dropped down for the first time surrounded by sharks. What could possibly wrong?
Many soon to be and current retirees are also facing a similar challenge in generating income in retirement. In the old days, you worked for an employer for 30+ years, received a gold watch, and a pension. I also forgot, that you generally died within 10 years of retiring. The pension combined with social security created a retirement income stream.
Combine this with a longer life expectancy than 20 years ago and it presents a unique challenge. A challenge that also included the stock market at all-time highs and a bond market that is going to see rising interest rates.
There is no one size fits all solution to this challenge. There is not a retirement income index fund that will ensure that you don’t run out of money. There is not a magic line that will appear to take you there.
You need to have a plan. A plan that shows you probabilities of success, so that you don’t start off taking too much money in the beginning. I have never met a client that wants to run out of money in retirement. I have, however, met several clients that wanted to die with a $1 in their accounts and nothing else. Good luck with that one. All you need to predict is the day that you are going to die.
Your retirement income plan cannot be left up on a shelf. It is something that needs to be reviewed as you move forward. To evolve as the economy, markets, and your life changes. A plan that is not reviewed, is like the dive cage in 47 meters down without proper maintenance. It might continue to work, but it could break at any time sending you sinking to the bottom. No one wants that unless you like all of these shark movies.
If you are facing concerns of knowing if you have enough income for your retirement goals and dreams, contact me or our offices to schedule your complimentary financial physical where we can thoroughly discuss & analyze your income plan within retirement.
Michael McGinley, CFP ®
Comprehensive Wealth Manager | Tax Advisor
Chandler, AZ 85226
Investing involves risk including loss of principal. No strategy assures success or protects against loss.