Friday, May 5, 2017

A Million Bucks


 

 
 Hello My Family How Are You Today?

Here are five reasons a $1 million nest egg could leave you short, according to financial advisers from around the country:
1. Health-care spending. Health-care needs are often overlooked when it comes to retirement planning. Unfortunately, bridging the gap between early retirement and Medicare at age 65 can be an expensive undertaking, said Benjamin Brandt, a financial advisor at Capital City Wealth Management.
The earlier the retirement, the larger the gap. "A super-sized emergency fund, fully funded Health Savings Account and non-retirement long-term savings can go a long way toward meeting these future needs," he said.
Unfortunately, too many early retirees forget to plan for this aspect of their future lives until they're already there.
2. Long-term care. Long-term care is rarely mentioned by early retirees, mostly because people assume they won't need it. But this is one area where you could suffer if you don't plan ahead. The average annual cost of an assisted-living facility in the United States was $43,536 last year. And in 20 years the projected annual cost for that same level of care is expected to be closer to $78,636 a year, according to a 2016 Genworth Cost of Care research study.
"Factoring in those expenses could easily wipe out even a million-dollar portfolio in a short and devastating fashion," said Josh Brein, a financial advisor with Brein Wealth Management.
Good financial advisers will instruct their clients on this risk and introduce them to long-term care insurance and other alternative insurance products that fit clients' needs.
"The truth is, everyone and everything will have a plan for your money, even if you don't. Whether it is a company on 5th Avenue, a vacation resort company or — God forbid — even Las Vegas, they have a plan for your money!" -Martin A. Smith, founder of WealthCare Financial Group
3. Retirement lifestyle. A large component of retirement planning is figuring out exactly how much you need to spend. But not everyone takes the time to run those numbers, said Martin A. Smith, founder of WealthCare Financial Group.
Smith suggests future retirees sit down and ask themselves a string of important questions. For example, do you plan on living in the same house or downsizing? Do you plan on providing for elderly parents or adult children? Have you paid off your home yet, or do you intend to?
"The truth is, everyone and everything will have a plan for your money, even if you don't," he said. "Whether it is a company on 5th Avenue, a vacation resort company or — God forbid — even Las Vegas, they have a plan for your money!"
If you don't take the reins, the natural current of lifestyle expenses can easily eat away at your nest egg. To combat this, you need to know exactly how much you plan to spend each month so you can calculate against your retirement funds to ensure a safe rate of withdrawal.
4. Inflation. Another key factor future retirees most often forget is one you never see: inflation. To be honest, nobody realizes how much inflation can erode their purchasing power, because it happens at such a slow pace.
If inflation were to rise at 3 percent annually, most investors are not going to notice it much year over year. However, your purchasing power will nearly be cut in half over 20 years. A good financial advisor will factor inflation into your retirement plan so you're not left holding the bag.
I read this article and wanted to share it with you. So what do you think is  1 million bucks enough to retire with?  Have a Great Cheap Cheetah Day

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