All of us hope for long, healthy lives – but we don’t want to outlive our money.
How can you prevent this?
For starters, use your health and family history to estimate your longevity.
Once you have a number, you can determine about how much money you’ll need, given your spending needs in retirement.
Next, don’t overlook health care costs in retirement – they can be considerable, and you’ll want to plan for them.
And while you’re still working, contribute as much as you can to your IRA and 401(k) or other employer-sponsored retirement plans.
You may also want to invest in vehicles that can provide a guaranteed lifetime income stream.
Finally, once you are retired and you start taking money out of your investment accounts, try to establish a sustainable withdrawal rate based on your level of assets, age, and retirement lifestyle.
A financial advisor can help you determine an appropriate rate.
Clearly, it will take planning and determination to help ensure you don’t run out of money – but it’s worth the effort.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
