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 plan. 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 content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.