We recently conducted a poll of our clients and asked one very simple question: “What is the one thing that worries you most about your money and personal finances?”
Here’s what we heard:
44% said they are concerned about outliving their assets
25% are concerned about how a market crash could impact them
19% are concerned about health and related costs
12% are concerned about government meddling and security related issues
Let’s focus on the 44% who are concerned about outliving their assets. First of all, the majority of our clients are quite financially secure. They have nice sized investment accounts. Many have pensions. Their financial plans reveal very good odds of not running out of money. So, why all the worry then? Some of it might stem from a habitual way of thinking rooted in past experiences. And, some might be absolutely justified no matter how much money one has such as the following:
- The sustainability of the Social Security system
- The degree of inflation eating away at our purchasing power to cover living expenses
- Increasing life expectancy
Funding an additional five or ten years of retirement beyond what you planned for can add up to a lot of money. So, how long do you plan for in your financial plan? It comes back to a solid estimate of how long you expect to live! Family history, prior medical conditions, exercise, and diet all play a role. So, to help you come up with a good starting place, click here to enter the Living to 100 forty question calculator which uses the most current and carefully researched scientific data available.
Maybe the exercise will prove to be a good first step to determining just how long your money needs to last!