Main Image Copia.
Nothing should stand between you and the retirement you’ve worked your whole life to achieve. However, the reality is that a comfortable retirement doesn’t happen by accident. Even if retirement seems far off, here are some of the biggest challenges you should start preparing for now, in order to protect the future that you and your loved ones hope to enjoy.Rising Inflation – Within the last few years rapid inflation has demanded more attention and it’s not going anywhere. The prices of goods and services are continuing to rise, year over year, so the purchasing power of your retirement income is going to decrease. That’s why if you assume your expenses will be the same in retirement as they are today, you’re going to run out of money To combat inflation, look for investments that will grow your assets with minimal fees. Aim to create income streams that can provide a cost-of-living adjustment increase each year to keep pace with inflation. Staying mindful of inflation will help you maintain your standard of living throughout your retirement years without forcing you to spend down your assets faster than expected. Long-Term Care Costs – You can run out of money quickly if you need long-term care (LTC) but don’t have a plan to pay for it. The Department of Health and Human Services reports that more than half of adults turning 65 today will need long-term care and about 1 in 7 will need care for more than five years. The average annual cost of care in an assisted living facility was $54,000 in 2021 and this will continue to rise. Protect yourself from costly and unexpected LTC expenses by looking into an LTC insurance policy or hybrid life insurance policy that will pay out if you have an LTC event. Certain types of longevity annuities can also help cover LTC costs and prevent a forced rapid spend-down of your retirement assets. Unpredictable Market Fluctuations – Millions of people saw their plans for retirement evaporate with the market crash of 2008. You can’t afford to risk your retirement dreams on the timing of the next market downturn.To understand your risk exposure and avoid unwelcome surprises that can derail your retirement, you need a comprehensive risk analysis. This clearly outlines the risk exposure within your investments and will help you understand exactly how the money you plan to depend on for retirement income can be impacted by potential stock market downturns and other economic factors. This knowledge allows you to make informed decisions on the extent of what you are willing to risk and what amount needs to be protected for you to live comfortably and without worry. What steps are you taking to protect your retirement dreams and ensure that your money lasts as long as you do? If you hope to enjoy retirement and live without the fear of running out of money, the time to act is now! Schedule a time to receive your complimentary Retirement Income for Life Blueprint and discover the decisions you can make today to ensure that your future retirement is everything you deserve to enjoy.Find out more strategies for creating the long-term wealth you desire and avoiding common retirement missteps in Elisabeth’s new book, Retirement By Design.
Investment advice offered through Copia Wealth Management Advisors, Inc. Copia Wealth Management Advisors, Inc. is a registered investment advisor.
