Bruce R. Farman, CFP®, CEP®, RFC
1021 Matties Walk
Watkinsville, GA 30677
ph: 706.310.0145
fax: 706.310.0534

bruce.farman@lfg.com

Five Challenges in Retirement

The changes in retirement have intensified the issues future retirees face. Here are the five basic challenges that could affect your retirement income security:

Timing/withdrawal rate

Choosing the wrong time to begin withdrawing income during retirement can have a dramatic impact on your future retirement income security, as can withdrawing too much money too soon.

Longevity

With Boomers living longer, healthier lives, retirement could conceivably last for 30 years or more. In that case, there is every possibility that retirees - or their spouses - could outlive their income.

Inflation and taxes

Inflation constantly erodes purchasing power through increased costs, while taxes reduce the potential of investable earnings.

Asset allocation

Careful consideration of asset allocation can help reduce the volatility (or degree of fluctuation) of the overall portfolio and help to optimize investors' balance of risk and return.

Health care expenses

The statistics as to the rise in these costs and how many people incur them are staggering. However, the real problem with this expense is that no one is certain if, when, or how much may be needed. Thus, it is very difficult to plan for with any accuracy.