On the whole, Americans have strong goals and ambitions for retirement. But are you taking sufficient steps to make sure that your dream retirement is actually in the cards?
Certainly, retirement is on plenty of peoples’ minds. A 2018 survey found that 52 percent of Americans, from age 22 to 74, say that they think about retirement “four or more times a week.”
At the same time, surveys indicate that Americans have big plans for this stage in life. For instance, more than 40% dream of buying another home post-retirement, according to a report from Motley Fool. Countless more have lofty dreams of decamping to their “dream” retirement destination, whether that means Miami, San Diego, or Honolulu, according to CNBC.
So, again, it’s worth asking yourself, no matter what stage of life’s journey you may be in:
“What actions should I be taking to put myself in the best possible situation for retirement? Am I on the right course to live the life I’ve always wanted? What do I want my life to look like in retirement – and what plan am I following to actually get there?”
At every step of the way, it’s important to be realistic, and consider your own unique wants and needs – as well as the ever-changing economic and lifestyle factors that could impact your long-term financial goals.
The reality is that the financial landscape that influences retirement factors has changed, and is changing, and will continue to shift and change with time. Many of the pieces of advice you may have heard along the way about saving, investing, or working into retirement have become outdated (or, at the very least, should be updated).
Here are a few compelling pieces of information that help illustrate this important point:
- As a population, Americans are getting older, and are living longer, on average. In fact, our country is home to a projected 72,000 centenarians – and there will only be more with time! According to data from the Social Security Administration, about one in four 65-year olds will live past age 90 – and one in ten will live past 100.
- Americans tend to significantly underestimate how much retirement they should be planning for. Today, many retirees should plan on having a nest egg that lasts for nearly 40 years, according to reports.
- Data from the Employee Benefit Research Institute has found that about 40.6 percent of all U.S. households “are projected to run out of money” at some point in retirement, according to CNBC.
- Many adults ultimately retire earlier than they planned to. The average retirement age today is around 63. A 2016 Retirement Confidence Survey found that nearly half (46%) of retirees left the workforce earlier than they had planned to.
- About 17% of American workers say that they are “very confident in their ability to live comfortably in retirement,” per reporting from Motley Fool, citing data from the Employee Benefit Research Institute.
Are you feeling surprised by any of those facts or figures? Taken together, they paint a very clear picture – that it’s vital to look ahead to retirement, to carefully account for your spending and saving, to be strategic about your retirement income and investments, and to have a clear path for the future. With the right strategies and guidance behind you, you can be a part of that confident 17%, and enjoy the next stage of your life on your terms.
At FourStar Wealth Advisors, we look at this time in a person’s life as the “LIVE” phase – part of our unique “Build. Live. Share.” approach to wealth management and financial planning. This is the time of a person’s life in which they may not be generating substantial new savings and investments – or, perhaps, some but not much. There are many ways to approach this phase of your investing life cycle. Some choose to keep working, though maybe not at the same career that they worked at before. Many will draw income from a long-term investing program, in combination with other sources.
There are as many distinct ways to approach the “LIVE” phase as there are people. However, it’s important to keep in mind that there are some innovative techniques and time-honored principles that can help you retire smarter.
Indeed, managing resources to help individuals live better in retirement is a core mission of Four Star Wealth Advisors. In addition to our comprehensive wealth management and financial planning services, our retirement planning services include:
- Lifestyle Review (helping determine a client’s retirement vision, and evaluating their needs, wants, and wishes)
- Planning for Retirement Income (including coordination of fixed and variable sources of income, accounting for the effects of longevity and inflationary risk)
- Planning for Social Security and Pension Election
- Planning for Healthcare Costs
About FourStar Wealth Advisors
FourStar Wealth Advisors is an independent Registered Investment Advisor firm headquartered in Chicago, founded on providing the most impactful and tailored wealth management solutions to all clients. To do this, FourStar Wealth Advisors utilizes the latest technology and a broad range of investment solutions to ensure that each client has the proper tools and resources to put them in the best position possible to achieve their personal financial dreams.
Have any questions? Want to get in touch? Don’t hesitate to give us a call at 312-667-1750, or use our online portal to contact us today.
GENERAL ADVERTISING DISCLAIMER
This article is provided by FourStar Wealth Advisors, LLC (“FourStar” or the “Firm”) for general informational purposes only. This information is not considered to be an offer to buy or sell any securities or other investments. Investing involves the risk of loss and investors should be prepared to bear potential losses. Investments should only be made after thorough review with your investment advisor, considering all factors including personal goals, needs and risk tolerance. FourStar is a SEC registered investment adviser that maintains a principal place of business in the State of Illinois. The Firm may only transact business in those states in which it is notice filed or qualifies for a corresponding exemption from such requirements. For information about FourStar’s registration status and business operations, please consult the Firm’s Form ADV disclosure documents, the most recent versions of which are available on the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov/