In Retirement Living is Risky

February 21,2011

We’re used to cautioning our clients that although they may be retiring, they still have a long planning horizon but that reality doesn’t necessarily resonate with some clients. In reviewing some old emails, I came across an article by Linda Stern for Reuters on The Retirement Process and in it Linda provided what I believe is an excellent layman’s description of “Retirement Risk” that you may find helpful in education your clients’ to their reality.

“On the day that you retire, you’re still looking ahead at major purchases as well as everyday expenses. You can expect to have to pay for at least 21,900 meals, 240 months of electric, phone and cable service and 20 years of property taxes, homeowners insurance or rent. But not all of your expenses will be handled with a fixed monthly draw from your investments. You’ll probably buy a couple of cars after you retire, and spend 20 holiday seasons buying gifts for your friends and family. Maybe you’ll want to take a celebratory trip. Oh, and leaky roofs and broken washing machines respect no man’s (or woman’s) retirement.” That adds up to BIG dollars.

You can find the full article at

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