Several factors affect how long your retirement money will last.
You have saved $1 million for retirement.
Technically you are a millionaire.
This should be sufficient for retirement, correct?
After all, a millionaire can move from the Ozarks to Beverly Hills, right?
A recent Think Advisor article asks “How Far Does $1 Million Go in Retirement?”
A comfortable retirement can vary in cost depending on differences in cost of living as well as how long you live.
This does not even include luxuries like travel or entertainment.
Why so much?
Medical costs and inflation are both significant factors.
According to HealthView Services, health care costs for those in retirement will rise by 5.5 percent annually in the next decade.
This is significantly more than the 1.9 percent increase from 2012 to 2016 in the U.S.
Your investment return could help offset some of the negative effects of inflation.
How should you plan to make your retirement last?
Expect the unexpected.
You cannot always plan for medical issues and expenditures.
But they can happen.
It is better to save enough to cover these, just in case.
Research where to retire.
Some states are better for finances in retirement.
In general, southern states will be more favorable.
Whether you are nearing retirement, or it is a little further down the road, you should consider to save.
Set a budget to help meet your goals.
Work with an experienced financial planner for advice specific to your needs and goals.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Think Advisor (August 22, 2017) “How Far Does $1 Million Go in Retirement?”