Ladies, do you know the three major threats to retirement?

We all want to have a colorful retirement, have the opportunity to travel, visit older children, start making love, play golf, read a book, or just relax on the rocker in the front porch.

But before we are too comfortable, we must make sure we are prepared for the three major threats of retirement. There are other threats to be sure, but these three are "normal" and "expected". If there is no plan, then we are likely to live longer than our money!

• Inflation
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  • Actual rate of return
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  • Life expectancy

inflation

The most important reason to plan your financial situation is to ensure that your funds remain stable and are expected to exceed inflation. Inflation is the silent killer of money purchasing power. As time goes by, prices will rise. Your plan must cover these increases.

From a financial perspective, you must at least maintain purchasing power to keep inflation. If you deposit all the money in the bank and postpone the plan, you do Manufacturing a decision and Start a plan.

Inflation is an increase in the cost of goods and services. We recognize that things next year may cost more than they do now. This is expected to be a strong economy that continues to grow. The inflation rate has been low for the past decade compared to historical figures, but it may increase again.

Actual rate of return

Not all investment options will keep you steady during inflation. You must invest to protect against the effects of inflation and taxes. The actual rate of return I am talking about is: [a] your funds grow after considering your taxes; [b] the cost of goods and services increases [inflation]. Remember that purchasing power comes from your actual funds and the ability to buy goods after inflation. When calculating the actual rate of return, you must remember taxes and inflation. Historically, "simple" investments in CDs and other bank deposit accounts do not allow you to maintain a balance in inflation. You must "increase" part of your money to exceed inflation.

Life expectancy

The final reason for developing a financial plan is that the average life expectancy is getting longer. You must develop a financial plan that is expected to grow.

I have already said it before, and I will say it again: "You don't want to be an old lady with a fixed income." You must make a lifelong growth plan! If you only have traditional bank deposits [CD, check, savings, money market accounts], then Yes fixed income.

If you look at the life expectancy chart, the "expectation" of a 60-year-old woman is 24.37 years. This means she will have a 50% chance of living long More than 24.37 years. If she puts her money into a bank deposit account, she will soon lose her purchasing power and get into trouble in the next few years.

How much do you think stamps, cars, homes or rocking chairs will cost in 24 years?

Whether through death, divorce or choosing to remain single, women have up to 90% of the opportunities at some stage of their lives and must be fully responsible for their finances. Even in a strong healthy marriage, many women need to be more interested in family finances. Now, with the gradual retirement of the baby boomer generation, the number of women who are expected to be economically independent will increase significantly.

Why create a plan? Because if you don't, these three threats can affect your colorful retirement life.

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