| Will I have enough money to last the rest of my life? | | | | housing and any outstanding loans. Most everything |
| The number one fear facing retirees is whether they | | | | else is discretionary. |
| are going to have enough money in retirement. | | | | Review your discretionary spending. Look at how |
| Ironically, that fear exists regardless of one's actual | | | | much you eat out and unnecessary shopping. Many |
| worth. In fact, people who report assets of $10 | | | | people, especially women, shop when they are bored. |
| million are more concerned about having enough | | | | If your are bored and shop to occupy your time, |
| money than people who have $500 thousand in | | | | explore other activities that would engage your time. |
| assets. In fact, it is only when people report having in | | | | You might volunteer to shop for shut-ins. (Spend |
| excess of $100 million do they relax about their | | | | their money, not yours.) |
| financial future. | | | | Many financial concerns are based on paying for |
| How could that be? The easy answer is Americans | | | | healthcare and other expenditures in the future. |
| of all income levels spend more than they make. As | | | | Based on your income, you may want to purchase |
| your wealth increase so does your expectation of | | | | additional medical and long term care insurance. It's |
| your minimal standard of living. What's the point of | | | | important to find a financial professional who can |
| having $10 million in the bank, you ask, if you can't | | | | advise you on your current and projected financial |
| enjoy it? | | | | situation and the best way to plan for your future as |
| To answer the question of whether or not you will | | | | you age. |
| have enough money to last the rest of your life, you | | | | You have done everything you can to prepare for |
| need to explore where the fear comes from. Is the | | | | your future by seeking professional advice and |
| fear base on an assessment of your financial situation | | | | understanding your financial situation. You have cut |
| or is it a psychological issue? | | | | expenses and/or are increasing your income, and you |
| In order to understand the fear of not having | | | | still have anxiety about money, you may want to |
| enough money, you need to look at two things. The | | | | explore it from a psychological perspective. |
| first is to assess your actual financial situation. The | | | | Psychological money issues mean you use money to |
| second is to explore the fear itself for psychological | | | | fix emotional needs. Examine your beliefs about |
| concerns. | | | | money and possessions. Are you concerned about |
| The best way to minimize your fear about not | | | | maintaining a certain lifestyle to impress friends or |
| having enough money to last the rest of your life is | | | | family? Do you believe you need to give your children |
| to spend less than you make. If you are retired and | | | | money when they ask for it? Do you believe you |
| have income from investments, are you able to live | | | | need to be able to buy what you want when you |
| only off the interest? (Financial advisors recommend | | | | want to have a sense of self-worth? Do you use |
| not taking more than five percent of you portfolio | | | | money worries as a way to manipulate your |
| every year. It's assumed that the bad years and the | | | | significant other? |
| good years will balance out. At that rate of | | | | Another challenge facing retired adults is learning to |
| withdrawal, you'll have enough to last through your | | | | live without earning money by working. Remember |
| lifetime.) Do you need to tap into the principle on a | | | | when you were child and asked your parents to buy |
| regular basis? Ideally, you want to leave the principle | | | | you a toy. They responded with, "If you want the |
| alone and have it grow every year. | | | | yo-yo, you're going to have to earn the money to |
| If you're going into debt to pay for current lifestyle, | | | | buy it." Much of the identity of Americans comes |
| you have some legitimate concerns. If you aren't | | | | from us being earners and providers. This is especially |
| willing or can't cut back on your expenses, explore | | | | true for men. "If I'm no longer a provider, what value |
| ways you can increase your income, by either | | | | do I have?" It's a different mindset to let your |
| working or starting a business. You may find that | | | | money work for you. |
| working fills time you would have otherwise used | | | | The transition to not working is a huge shift. |
| spending money. | | | | Understanding the varied dynamics of your |
| Compile a budget so you know how much is coming | | | | relationship with money will help determine the peace |
| in every month and how much is going out. The | | | | of mind you have in your later years. |
| most important aspect of the budget is to explore | | | | (This article is not intended to provide financial advice, |
| your fixed and discretionary expenses. Your fixed | | | | but only offer information to help you explore your |
| expenses are what you spend every month on | | | | economic situation. |