It doesn't matter if you're a pre-retiree or post-retiree, everyone is seeking a comfort zone form these two constantly nagging words . . .
RETIREMENT SUCCESS.
What exactly is 'Retirement Success?"
Simply put, it's the ability to generate a successful income strategy that will guarantee lifetime income, and in the end also maintain some type of return that we can pass onto our heirs.
However, inside this "Simple" many variables have to be considered, along with . . . 'what life issues will that 'income' resolve?
Up until 2007 "wealth accumulation" and 'retiring early' was the dominate drive of the Baby Boomer. Today there is an entirely new mindset about retirement. The
2008 crisis was like a 'cold bucket of water,' a 'wakeup call' to millions that wealth can be lost! Some lost so much wealth, that many of those in retirement found themselves having to re-enter the workforce.
How would you feel if you had to re-enter the workforce after retirement due to loss of your wealth?
During our 20's, 30's and even 40's, 'health concerns and expenses' were rarely thought about as an issue in the retirement years. In the youthful years who ever envisions themselves having to take medication every month that could cost into the hundreds and thousands of dollars . . .and this is after the copayment!
Or . . .absolutely no one considered that one day they may need long term care and the costs associated with that. Long term expenses alone could run $3,000 to $7,000 a month!
Medical technological advances had everyone wheeling with excitement that -"Hey, now we'll be able to live at least ten, possibly fifteen years longer!" That excitement has now quickly turned it's course as it's realized that means retirement income will be needed for 30 to 40 years instead of 10 to 15 years.
Many are now realizing that the size of the retirement account and the accumulation of wealth that it's derived is not as important as how can they protect the existing accumulation, ' the principal' from market loss? Another new concern on the table is how does one go about achieving a guaranteed lifetime inflation-adjusted income stream?
Inflation certainly cannot be discounted. Time and inflation work hand-in-hand along with age. As time marches on, age increases and likewise does the cost of goods and services needed to maintain the lifestyle you've come accustomed to, and for those of you who probably didn't notice inflation, take a look:
- Gallon of gas in Jan. 2000 was $1.27 and as of June 2021 $4.55 - 258.2% increase
- A dozen eggs in Jan. 2000 cost $0.97 and as of June 2021 $2.89 - 198% increase
- Postage stamps in Jan. 2000 costs $0.33 and as of June 2021 $0.55 - a 66.7% increase
- Movie tickets in Jan. 2000 cost $5.25 and as of June 2021 $10.99 - 109.3% increase
- Annual healthcare spending per capita in Jan. 2000 was $4,550.00 and as of June 2021 $10,244.00 - 124.7% increase
Is anyone out there have the feeling that they just might on some level be losing control over a few key very important factors of their lives? Take a good look at those figures and realize that the lowest increase over a 21 year period is 66.7%!
Retirement can last from a low of 25 up to 40 years.
If you do not have a successful inflation-adjusted income strategy in place that supports your lifestyle choice you might be facing some challenging retirement years.
There is one product that has been defined as successfully meeting these needs. That product is a fixed indexed annuity with a guaranteed lifetime withdrawal benefit.
No two fingerprints are alike, so too are no two retirement strategies identical. Each person's strategy is different because all retirement goals differ and so too are the portfolios. A combination of different strategies should be created to meet your individual goals.
If you are striving for a chance at "RETIREMENT SUCCESS" then you must ask the question: "How well can I live on a fixed income during retirement?
