It makes no difference whether you retire at 65 or 75 years old, for most elderly – except the very best off – a serious concern that most have is whether or not they will outlive their income and assets.

However, with some simple planning and budgeting, it is easier than expected to overcome those fears and live a more peaceful retirement.

When most people retire, they have a combination of assets to live on for the rest of their lives, such as cash or other assets which can be converted to cash, investments, a retirement account and / or social security.  For most retirees, if they take the time to calculate them, a firm dollar value can be placed on those assets that are supposed to support them during the retirement years.

What none of those retirees do not know, however, is how many years those assets have to last.  Obviously, for all retirees, this is a genuine concern that is not easily resolved.  However, this does not mean that most retirees need to live daily in fear that they day could come when they would be impoverished.

While retirees might not be able to do much about the income side of retirement, they can more readily take firm control over the expense side and in this manner give themselves more consolation that they are doing all they can do to manage their retirement assets.

When persons retire, whether it’s a couple or an individual, the same principles apply.  You have to change the mindset that we develop during our adult years when our income is generally steady and adequate.

During those years we become accustomed to buying the things that we need – and those things which are not necessities that we simply want – because we know our income will cover those expenditures.

We move because we either need or want a better house in a different neighborhood.  We buy a new car because the older one is showing its age.  We buy a new washer, dryer or refrigerator because we get up one morning and the appliance does not work as well or as reliably as we desire. And we buy new clothes not because we have nothing to wear but because we’re tired of wearing what we already have.

However, during retirement, with some minor adjustments to our mind set, we can easily become acclimated to living with the things we have, with repairing our cars, appliances, etc., rather than replacing when not absolutely necessary. When you can’t control you income, you can more closely monitor your expenditures which are under your
control.

For more information on this subject please contact our office, and we will be happy to review your asset and portfolios to make sure you  are not in danger of outliving your income!