SEPTEMBER/OCTOBER 2016
| TAMPA BAY MAGAZINE 67
The Importance of Timing
Although genetics can play into one’s
life expectancy, a survey by the Society
of Actuaries showed that there is a
disconnection between how long people
expect to live and the age their oldest
family members reached. Despite half of
retirees and pre-retirees reporting that
they had a family member who lived longer
than 90 years, both groups expected to
live an average of six years less than their
oldest-living family member. Another
challenge to planning your retirement
income is estimating when you’ll retire.
Plan as you may, this can be a variable you
can’t control — largely due to employer
changes, like closures or downsizing, or
potential health issues you or your loved
ones may experience. In fact, the age people
expect to retire is often higher than the
actual age at which most people retire. In
recent years, 33 percent of workers have
indicated they expect to retire after age 65.
At the same time, studies show that only 16
percent of Americans actually retire at age
65. Presently, the median retirement age is
62, and about 35 percent of retirees retired
before age 60.
The Importance of Income
Planning
A 2014 poll revealed that baby boomers
who firmly believe they have enough money
to do everything they want expect to retire
at age 66. Boomers who do not believe this
predict they will retire significantly later, at
age 73. However, as we’ve established with
regard to life expectancy and retirement age,
our beliefs do not always reflect our reality.
Unfortunately, today’s statistics show that
Americans on average are ill-prepared for
retirement. In a 2013 survey that asked
what amount of savings people think they
will need for retirement, 50 percent of
respondents said half a million dollars or
less. Yet another study revealed that the
current median savings of middle-class
Americans in their 40s is $40,000 and only
$20,000 for those in their 50s. Respondents
between the ages of 30 and 49 are saving
a median amount of $200 each month for
retirement, whereas those between the
ages of 50 and 59 are saving only $78 a
month. Are Americans concerned about
not having enough retirement income?
Absolutely. Among the biggest worries for
a majority of Americans is not being able to
pay medical bills should they experience a
serious illness or accident.
The Value of an Objective
Opinion
With the new paradigm of living longer
and the potential impacts of both good and
bad market performance, seeking guidance
from a financial advisor who can help you
structure a retirement income strategy
that reflects your financial situation,
risk tolerance and investment objectives
is becoming an increasingly important
part of planning for retirement. And not
just any financial advice, but objective
financial advice. With so much at stake,
it’s important that you feel you can trust
a financial advisor to consider a wide
variety of possible solutions, including the
investment and insurance products, before
making any recommendations. You also
want to have confidence that the advice
being provided by your financial advisor is
in your best interests — not his or hers.
Within the financial services
industry, there are independent financial
professionals who operate as self-employed
business owners and sell the products of
multiple financial institutions.
The Benefits of Independence
As the demand for objective advice
grows, it stands to reason more people
may choose to work with independent
professionals. Independent financial
advisors are not forced to sell only the
proprietary products of a single financial
institution; rather, they generally have
access to a larger selection of possible
solutions from a wide range of financial
institutions to help clients work toward
their financial goals. Planning for retirement
income today can be challenging. For this
reason, you may want to consider securing
objective financial advice to help you meet
this challenge, and take steps to help
keep you on the path toward your desired
financial future.
727.724.3334
2637 McCormick Drive #101
Clearwater, FL 33759
WEALTH MANAGEMENT
How long will you live, and how much money will you
need to live comfortably until you pass away ?