If you have researched retirement, you have probably read that retirees' first concern is that they will survive their money.

This is a valid concern due to several factors. Americans live longer. The costs of health care are increasing. Pensions (defined benefit plans) are a thing of the past. Today, many retirees are almost 100% dependent on Social Security and all the money that they have been able to keep in retirement plans, such as IRAs, 401 (k) s, 403 (b) s, etc.

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It's easy to be hesitant about the future and it's wise to pay attention to your retirement expenses. However, what worries me the most is that some pensioners are so afraid of running out of money that they can not resist taking the vacation of their dreams or traveling more to see their grandchildren.

Nobody can change the inevitable. Your story will eventually end at some point, but with proper planning, you can fill the pages of your story with whatever you choose!

One of the families I have had the pleasure of working with is a good example. She and her husband moved to Denver about 15 years ago from San Diego. The decision to move was extremely difficult as it meant leaving the family behind to follow her husband's career. About two years ago, unfortunately, her husband died unexpectedly. During our first meeting as I got to know her, I figured if her family was in San Diego, why was she not there? When I finally asked the question – his answer is something I will never forget – "I'd like, but I can not afford to go back."

The problem was not that she had not saved enough money. Once her husband (who had managed their finances) passed, she was not sure of her financial well-being.

This is a situation I see all too often. Most retirees do not have a complete financial plan to guide them in their retirement. Imagine taking a trip without a map to reach your destination. This is essentially what people without a pension plan do. If you have a plan, are you sure that your spouse understands in turn how to get from point A to point B if you are not here?

Moving from asset accumulation to living on these assets can be difficult. A large number of retirees I advise feel that they would prefer to save what they can today because they may need it in the future.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Ameriprise Financial recently published an article focused on this growing concern of surviving your assets. In this study, they found that nearly 7 out of 68 (68%) US retirees still have not touched their retirement savings other than what the government requires at age 70 and a half through mandatory minimum distributions ( MSY). When asked why individuals did not spend their retirement savings, most (71%) responded that it was not because they feared they would not have saved enough, but because they had no plan to withdraw from their accounts that they felt confident in data "react-react =" 31 "> Ameriprise Financial recently published an article on this growing concern that to survive longer than your assets.In this study, they found that nearly 7 out of 68 US retirees (68%) had not yet been affected, retirement savings other than those required by the government. at 70 and a half via mandatory minimum distributions (MRDs) .When asked why individuals were not spending their retirement savings, most (71%) responded that it was not because that they feared they did not have enough savings born, it is because they had not planned to withdraw from their accounts in which they felt confident.

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Here are three steps to take to feel more confident about your retirement plan:

1. Create (or update) your budget.

Similar to when you work, you will have fixed expenses that are just part of life. Mortgage, food, gas, health insurance, utilities, etc. These costs may increase over time due to inflation, but they will not go away. Because we know you will have to pay for these expenses for the rest of your life, you should explore sustainable investment options with little or no risk. We often call this part of your portfolio the "base" on which everything else is built.

2. Create a "list of buckets at retirement".

You have not worked more than 30 years to just sit on the couch once retired! What would you like to do? What would you like to see? Where would you like to go? Make a list of things you have always wanted to accomplish. This list should even include things such as updating your home or buying a new car. Regardless of the amount of money you plan to spend in your basket in the first 10 years of retirement, invest it in a way that maintains some liquidity (access to funds), but most importantly to protect you from declines in the market. market. We often call this section the "walls" of your retirement plan.

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3. Take appropriate risk.

We all lived between 2001 and 2008. We all know how quickly the stock market can reverse its course. I think this is one of the main reasons why many people do not finish their retirement lists. If you are not sure of the future of your assets, it is difficult to spend the money needed to take the vacation of your dreams. In addition, if the market is corrected, do you think that the electricity company agrees not to pay your bill this month? Withdrawing money from your accounts while the market is down only makes recovery more difficult. For us, it is important to start by financing your "foundation". After that, we can help you determine the number of items in your list of compartments that you can afford to achieve via the "walls". It is only after these two elements are in place that we discuss the last part of your retirement plan, which we call the "roof." This is the risk-based section of your portfolio designed for long-term growth.

One of my favorite sayings is, "Your next 10 years should be your best 10 years." Do not miss the fun you could have at retirement simply because you do not have a financial plan. Talk to a qualified retirement planning professional who can help you achieve everything you could dream of becoming a retirement.

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