Will You Outlive Your Money?

All of us know about saving for retirement, but how much do any of us know about spending during retirement? With fewer people receiving pensions, and more and more retirees using a combination of IRAs, 401(k)s, stock investments and real estate, your retirement income can begin to look like something even an economics expert would have trouble with.

“The mathematics of this are beyond what most people could really be sophisticated at,” said Roger Ibbotson, a professor at the Yale School of Management, to New York Times writer Robert Hertzberg, in his article Making Your Money Last As Long As You Live.

Complicated mathematics means that it is unlikely most retirees (or near-retirees) have the correct equation to withdraw the amounts necessary to live month-to-month as well as continue to save for the future. There is help, however. Hertzberg’s article explains how two of the biggest fund companies, Fidelity and Mutual, “have introduced mutual funds intended to make it easy for retirees to make systematic monthly withdrawals.”

These particular funds won’t be right for everybody, but with all the different savings and retirement options available today, it is definitely worth mentioning to your CFP (Certified Financial Planner) and Estate Planning Attorney.

Why your Estate Planning Attorney?

While investments and retirement accounts may seem like they rest firmly in the camp of your financial planner, the truth is that estate planning attorneys and CFPs often work hand-in-hand to ensure that your investments are held and protected in a way that will best serve you and your family. If your CFP can help you manage your savings, your estate plannning attorney will work with you to make sure that your hard-earned money goes efficiently to your children and grandchildren upon your death, rather than being siphoned off by taxes or costly probate expenses.

It is never too early to start thinking about the future. Talk to your Financial Planner and call our office today.