Seven Retirement Risks To Avoid
In order to navigate successfully throughout your retirement, it’s critical to understand the seven basic risks you will face. Knowing how to eliminate or minimize these and their impact is the key to enjoying the kind of worry-free retirement you’ve worked a lifetime to achieve.
Longevity Risk - “The risk of outliving your money.”
It’s no secret that people are living longer than ever before. Avoiding this risk involves creating a guaranteed lifetime income for both you and your spouse that can increase with inflation but will never decrease due to a stock market crash.
Market Risk - “The risk of losing significant assets due to a stock market crash.”
Investing successfully means focusing first on risk rather than return. When you’re invested more in line with your personal risk tolerance, your retirement income goals can be achieved more easily with less cost and greater peace of mind.
Sequence Of Returns Risk - “The ‘silent killer’ of retirement plans.”
How much money you take out of your nest egg, and when you take it, is just as important as how much you earn on your money. Different investment strategies are needed during the withdrawal phase of your life than during the accumulation phase. Use strategies which can help protect your nest egg and provide the income you need throughout retirement regardless of market performance.
Tax Risk - “The risk of losing money due to unnecessary taxation.”
Most people are overpaying their income taxes just because they don’t know any better. Proven strategies exist which can reduce or even eliminate both income and estate taxes, improving your investment returns, lifetime income, and overall asset growth.
Interest Rate Risk - “The risk of losing asset value as interest rates change.”
Interest rates can have a dramatic effect on your asset values, growth and income. A good plan includes contingencies to safely grow your money regardless of changes in interest rates.
Inflation Risk - “The need for greater income tomorrow to sustain a lifestyle you enjoy today.”
Long term inflation can slowly rob you of your wealth. One key is to maintain, or even increase, your purchasing power to help offset inflation throughout retirement.
Long Term Care Risk - “The risk of depleting assets due to a need for extended care.”
One of the biggest risks we all face during retirement is the potential need for long-term care. Protect your assets from potentially devastating long-term care expenses by using the latest asset protection strategies specifically designed for this uncertainty. For those fortunate enough never to need care, unused funds previously allocated can be redirected for the benefit of yourself or other family members.
ARS and its affiliates do not offer legal, tax or accounting advice. Clients are urged to consult their own legal, tax and accounting advisors with respect to their specific situations.