Oct 5, 2018
Today, we learn how to deal with uncertainties that relate to
our retirement. We also talk about important decisions that we need
to get right before we retire, because they can't be changed
Main Questions Asked:
How can I focus on the things that I can control?
How can I create the best plan to overcome things like longevity
risk and tax rate increases?
Key Lessons Learned:
How to Deal With Retirement Uncertainties
- How to plan what we know that we don't know. Life expectancy. A
healthy 65-year-old could live to 95. Many people will live past
100. It's important to have income and give yourself raises for
inflation. Plan to be alive until the age 100.
- Changes in interest rates. Your portfolio is affected by
changes in interest rates. Interest rates affect bond rates. If the
bond interest rate goes up, you don't make any money. If you're
near retirement, you need a significant amount of assets that can't
go down. Look into ETFs and insurance products.
- Tax rates in the future. There's a good chance that taxes will
go up, it might be a good idea to investigate things like Roth
- What happens in the market from year-to-year? We have no idea,
but we need to be careful of the averages. Especially since many
investors switch in and out, and don't get those averages.
Important Retirement Decisions You Need to Get
- When you start your Social Security. Starting Social Security
is a irreversible decision. You need to consider your individual
circumstances and include Social Security as one income source in
your overall plan.
- Whether you should take the spousal benefit on your pension.
There are so many different options. It's important to get help
with making this decision. There are things you can do, like take
the full benefit plan but purchase life insurance.
- Whether or not to get life insurance. You need to weigh all of
your options before dropping life insurance, or if you need life
insurance get a decision as possible.
- Choosing a retirement date can be emotionally irreversible.
It's critical to choose a retirement date that works for you,
because it's hard to get back into the workplace. Plus, there are
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!