Andy Barkate: on making your retirement account last longer
Another Retirement Tip From Andy Barkate:
Andy Barkate, President of California Retirement Plans and specialist on retirement and personal finance, lays out several ways to determine an appropriate withdrawal amount withdraw each year in retirement:
“How to Make Your Retirement Account Last a Lifetime”
For most of us, one of our largest assets and retirement income sources is our retirement account. So it makes good sense to monitor and manage this account as closely as possible: Here are some tips:
Define a vision of retirement and revisit it every year: Incorporating part-time work into the retirement picture might make other financial goals more affordable. A person who manages his or her finances or works with an expert needs to revisit those goals at least annually to assess the feasibility of affording a particular lifestyle in retirement.
Track working-life expenses for at least 6 months: This is where your vision of retirement becomes real. Make your list as exact as possible.
Unforeseen health issues: For many retirees, increasing healthcare expenses and the cost of end-of-life-care account for significant spending. As a result, many retirees may pay for expensive experimental treatments to fight disease or long-term assisted living or nursing home care. According to AARP, annual nursing home costs will be at more than $100,000 a year in the next two decades compared to their current annual range of $45,000-$60,000. While public/state aid picks up medical expenses for those who exhaust their assets in most states, most of us desire more than minimal standards of care. Shift into a retirement investment strategy in stages: With a clear majority of investors having inadequate retirement funds in place near or at retirement age, it may seem odd to talk about investing post-retirement. But the younger an investor is, the more valuable the conversation.
Good advisers can help build more balanced portfolios that fit the exact needs of the investor as retirement nears.
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