The fear of outliving your money is terrifying.
The Millionaire Insider’s® Women and Money Study showed that the most common fear was running out of money in retirement.
Interestingly, many women shared that they didn’t know what to do. Or if they did, they weren’t doing it. That is so scary.
Today, we will review the steps to save enough money for retirement.
Transcript: Wealth Inside and Out® Podcast – How to Avoid Running Out of Money in Retirement
Hi, my name is Annette Bau (bah oo).
I’m a Certified Financial Planner™ and founder of The Millionaire Insider®.
This is the Wealth Inside and Out® Podcast.
Retirement Planning Checklist Link
Today’s free resource is our retirement plan checklist. You can go to Retirement Planning Checklist and access it.
This resource provides an overview of the actions you must take to avoid worrying about running out of money and living your life on your terms in retirement. And that you can live the golden years versus the miserable, broke years.
We share insights in this free resource that many people don’t even think of.
And one of the most common concerns, especially with women, is running out of money.
This guide will provide you with the steps you need to take to start creating a plan so you can start enjoying your life and stop worrying about money again. Again, Retirement Planning Checklist.
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Let’s dive into
How to Avoid Running Out of Money in Retirement
Today, you will learn:
- >> 3:40: Three of the most important questions you need to ask before considering retirement. And how your retirement date (20 years vs five impacts what you ask and the action you take).
- >> 5:28: The dry run that most advisors and retirees need to remember (or don’t even know about!)
- >> 7:00: Why you need to pay attention to healthcare costs in retirement.
- >> 12:00: How to determine when to take Social Security and how the Social Security Administration can help you make the right decision for your situation.
- >> 12:45: Considerations for when you retire or get a part-time job.
A great strategy to avoid running out of money in retirement is delaying retirement or getting a part-time job.
- >> 13:45: When to take RMD (Required Minimum Distributions) from your retirement accounts.
If you have questions or want to avoid running out of money in retirement, start here:
- 14 critical insights to avoid running out of money.
- What to do before purchasing long-term care insurance.
- How to maximize your retirement savings.
Your retirement plan can be a great source of income, but it should not be the only way you fund your cash flow.
- How to avoid the fatal mistake of not planning for unexpected expenses.
Too often, people do not set aside money for unexpected expenses. They then end up using their savings for retirement, which is never a great option.
- Why planning to keep working isn’t always a great plan.
One woman shared that she always just figured she could work. She always made a good living and never worried about running out of money. She got sick, and now she can’t work. And she said it’s just terrifying. Don’t let that be you.
- What you need to know about investing in the stock market or fixed income and why you may need to hire a professional.
Anyone can manage money in an up-market, but not so much in a down-market. Failing to mitigate risk is a critical oversight in investment management.
You will also learn:
Interestingly, over 90% of women in The Millionaire Insider® Women & Money study shared that the risk of outliving their money was one of their top concerns. And I would say rightly so. Today, we will dive into steps you can take so you don’t run out of money.
You will also learn:
- Considerations regarding guaranteed income stream and what you should do before purchasing an annuity.
- Considerations when determining the best course for you.
- How to determine if you need a financial professional.
- How to protect your money as the cost of living increases.
Benefits of a part-time job include:
- Generating additional income
- Staying active socially
- Delaying your need to draw down retirement savings
- Reducing the amount of money you need to withdraw from your accounts
There are so many benefits of having a part-time job, especially if it’s one you really love.
Recap – How to Avoid Running Out of Money in Retirement
- Review the 14 different insights.
- Determine which risks are the biggest potential problem for you.
- Confirm when you want to retire and when you can afford to.
- Create a contingency plan if your plan doesn’t go as expected.
Meaning, I get that you have a plan that this will happen, but rarely is that what happens. Or they’ve had a plan but haven’t continued to update it.
Looking at your situation, circumstances, and financial situation is essential. Then, create a plan that you can adapt to, has flexibility, and allows you to grow with it. Regularly reassess your financial plan and make adjustments as necessary.
That is one of the most important steps you can take to ensure you won’t end up broke in retirement. We want your retirement to be your golden years, not your broke years. There is nothing fun about being broke in retirement.
As I shared with you, the biggest concern in our recent survey with women, the number one concern is running out of money in retirement. It’s terrifying.
And a lot of them are not doing anything. Some of them don’t know what to do. Some of them are doing nothing. So please don’t let that be you.
Take action as soon as possible if you fear running out of money in retirement.
I was talking with another woman, interviewing her, and she said she’s terrified of running out of money. She said, “We have a million dollars left.” Now, a million dollars sounds like a lot of money. I get it.
But it’s really not, especially if you’re just living on earnings.
She shared essential insights when we spoke. One was that they’d been retired for ten years.
Now, I’m thinking in the back of my mind, like, if I was concerned about running out of money, and I’ve been retired for ten years, now would be a perfect time to get a part-time job.
That’s how I want you to start thinking because she was just kind of, like, so afraid she will run out of money. But what are you doing? Well, not really anything.
Okay, so you’re just worrying about it. Why couldn’t she work 10, 15, or 20 hours weekly? That would have a huge impact. And I just thought it was so interesting that they’re spending more than they have.
Her friend said, “I’m not concerned about it because I’ve been retired for ten years. I spend less than I have every month so I can save money.”
It’s a very different scenario. We must be clear about where we are and then consider what we can do.
Final considerations include:
- Getting a part-time job
- Delaying retirement
- Making a spending plan that’ll work in retirement
- Managing debt
- Hiring professionals
- Hedging against inflation
- Consider options like an annuity that provides a guaranteed income.
So there you have it.
Until our next episode, take one action that will help you create a secure financial future and retirement you love.
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The number of women who were not broke or poor while working or married is staggering.
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Thank you so much for joining me for
How to Avoid Running Out of Money in Retirement
I’m Annette Bau (Bah oo).
All international copyrights are reserved.
Bye for now.