By Brent Shaw, Modern Woodmen,
Fraternal Financial | m.brent.shaw@mwarep.org

Jean and Carrol’s retirement savings won’t run out tomorrow, but they worry that what they spend on leisure now will rob them of money they could need for essentials later. They aren’t wrong to be concerned about outliving their nest egg. Today’s retirees will live longer and spend more time in retirement than any other generation in American history.Today’s retirees are living longer and spending more than they’d expected. Half of all 65-year-olds will live beyond age 90, according to the LIMRA Secure Retirement Institute. Yet, less than a third consider longevity risk to their financial security or have estimated how long their assets will last in retirement. Taking the extra steps to plan how to spend your retirement is key to having enough to last.

Without a strategy to generate income, retirees risk outliving the money they’ve saved to maintain their lifestyles and financial independence. A single fixed annuity is one option for a more secure retirement. Using this as one tool in your toolbox, you can capture the security of a guaranteed interest rate and create a retirement “paycheck” for yourself.

To read more, pick up a copy of the March/April issue of LiveIt Magazine. To subscribe call 940-872-5922.

By Brent Shaw, Modern Woodmen, Fraternal Financial | m.brent.shaw@mwarep.org

If you have made your way ‘over the hill’ you could be closing in on retirement. Seven out of 10 people in your age range expect to work past age 65.1.
With the average age of retirement between 61 to 62 years old, you could be closer than you think. Here are a few hints to help you better secure your future.

1. Be in the know- how much you’ll need.
   Would you take a long trip abroad without planning or budgeting for it? No way. Thinking about how much money you need to live on for the rest of your retirement can be a daunting task. Taking easy steps can help.
   • Start by thinking about what future expenses you’ll have and what sources of income you’ll have.
   • Look at where you are at in all your accounts currently; i.e., 401k, IRA, and savings.
   • Work with your financial professional to create a plan and answer any questions.
   • Don’t let life surprise you. Being prepared is vital and knowing more will help.
2. Get caught up.
   The days of retiring with a pension that paid your dad for his whole life are a thing of the past. The only person that can take care of you financially in the future is you in the present. If you feel that you have fallen behind, there are still steps you can take to gain some ground. After 50, you gain a valuable tool in catch-up contributions. For age 50 and older, there is a maximum contribution of $26,000 to your 401(k) each year. That’s $6,500 more than other workers are allowed. You can also invest an extra $1,000 in your IRA each year, on top of the regular limit of $6,000.

To read more, pick up a copy of the January/February issue of LiveIt Magazine. To subscribe call 940-872-5922.

By Brent Shaw, Modern Woodmen, Fraternal Financial | m.brent.shaw@mwarep.org

Life changes can be unnerving even in the best of times. So, the decision to stop working and live the rest of your happy days on your savings could be worrying. That is especially true in an economy that has taken a dip. Bear market, recession, inflation, depression, or just downturn; no matter what they call it or don’t call it, the start of your retirement is not the time you want that to happen. If you do find yourself looking at retirement when the market may be on shaky footing, here are some ideas to keep in mind.

• Build your safety net. Planning to pick the exact time to pull your investments from the market is a great idea but is impossible in practice. A better method would be to anticipate a down market at some point during your retirement. According to a 2020 Vanguard study, the most vulnerable time for a retiree to outlive their retirement savings is at the start of retirement during an economic downturn. If the market takes a dip, you still own the same number of investments, and they have the chance to go up over time once the downturn ends. The problem comes when a retiree needs to sell off some of those investments at a deep loss in the present and future earning potential of those funds — growing a more significant cash reserve to draw from during a downturn is the best way to avoid outliving your retirement. The typical downturn over the last few decades lasts about two years and having enough cash on hand to outlast these downturns can increase your nest egg’s longevity.

To read more, pick up a copy of the September/October issue of LiveIt magazine. To subscribe, call 940-872-2076.