Could you be sabotaging your retirement? No matter how many assets you have or what stage of life you are in, your attitudes about money could ruin your retirement.
Pre-Retirees. You should be concerned whether you will save enough for retirement. Which pre-retiree are you?
• Avoiders. You typically ignore saving. You might worry about retirement so you avoid planning. Or you are just living in the moment. Unless you receive a windfall or inheritance, your lifestyle may require drastic changes in retirement. If you have not begun planning, take action before it is too late.
• Dreamers. You save sporadically and inconsistently. You are hopeful about retirement but may lack a concrete plan. You may wonder how much you will need for retirement. Determine your lifestyle requirement and the assets needed to support it. Then you can create a plan for retirement success.
• Accumulators. You are disciplined asset gatherers with a real saving plan. You may feel optimistic about a comfortable retirement. Yet you may wonder if you will outlive your assets. Get answers whether your assets will support your retirement lifestyle or not. If your assets are limited, you may need to consider protection.
Retirees. You should be concerned whether you will run out of money or not. Retirees on a fixed income have little spending flexibility. Those with assets have flexibility but may still be at risk. Which retirement lifestyle are you living?
• Bleeders. You spend beyond your means. You risk running out of assets. Even if you have significant wealth, you may be a Bleeder without realizing it. Seek advice to learn what you can live on reliably before there is no remedy.
• Gamblers. Your retirement lifestyle could lead to bleeding. You have sufficient assets and live responsibly. However, you too could be at risk. Significant and unexpected expenses, market volatility, high inflation, and even your longevity could jeopardize your retirement security. Seek advice to protect your assets from risks like these.
• Achievers. You live a comfortable lifestyle and have plenty of assets. Your concerns may be about preserving and transferring your estate. You may want to transfer assets to your heirs efficiently. Or, you may want to fund philanthropic pursuits. Continue planning, even if you have significant wealth.
As you can see, the right money attitudes can lead to a comfortable retirement. Conversely, wrong money attitudes can lead to financial distress. The best approach is to accumulate assets early. Otherwise, determine if your assets can support your lifestyle. Be sure to protect what you have. And for the affluent, use tax efficient wealth transfer strategies. Moreover, seek qualified professional advice to manage your retirement and wealth properly.
Glenn A. Cunningham is a CERTIFIED FINANCIAL PLANNER™ professional located in Temecula. He is the owner and President of GC Asset Management, a Registered Investment Advisor that specializes in Wealth and Retirement Strategies. For more information visit www.GCAsset.com or call (619) 356-8810.