Jul 24, 2020
You know the old saying, "If it ain't broke, don't fix it?"
Well, there are some things that can stand the test of time. But,
then there are things that need to be re-evaluated as time goes on.
On todays episode, Steve discusses some common retirement planning
beliefs that don't hold up so well in todays world!
- My Expected Lifespan Is 75-85 Years.
Yes, the average life expectancy is in this range, but that’s
irrelevant to any one person. Half the people will live
longer than the median, and you’ll hope to be part of that
group. The chances of you dying at an “average” age are
- I’ll be in a lower tax bracket when I
retire. We have a serious debt and spending problem,
so the odds are good that tax brackets will be rising instead of
falling. Also, remember that the tax-deductible money you
socked away in your 401(k) will become fully taxable during
- My overall expenses will be lower in
retirement. Some expenses may be lower, but others
will be the same or even higher during retirement. For
example, as you age, your health tends to decline, so you could
face higher medical bills.
- I won’t outlive my money if I withdraw 4% a
year. Anything could happen that might give you no
other choice but to withdraw more than your planned 4%. Treat
the 4% rule as a general guideline, and always prepare for the
- I’ll live off my pension. Many state
pension plans are underfunded and that could affect your retirement
income. If your employer goes bankrupt, the Pension Benefit
Guaranty Corporation protects your pension. But it’s possible
you might not get every dollar you expected.
Contact Steve today for a complimentary
Portfolio Analysis to
make sure YOU'RE on track with your retirement income