You’ve done your research, saved up some funds, opened accounts, and maybe even hired a broker. Seems like all the hard work is over and all you need to do is stay employed for the next couple of decades. While many aspects of growing your retirement fund are as hands-off and automated as they’ve ever been, there are a few ongoing risks that many prospective retirees have not taken into consideration.
Most of us learn about inflation for the first time in our high school economics class. Many understand it’s a term used to denote when a currency’s value drops when too much of it is in circulation. This is usually where the explanation stops. One thing all investors must understand is that when inflation hits (and it always does), the costs for goods and services also increase. This means that the amount of money you think you need now may not enough in the future. Make sure you’re putting your money in portfolios and accounts that take inflation into account and protect your investment over time.
2. Rising Healthcare Costs
Death, Taxes, and Healthcare costs. We’ll all need to see the doctor, be hospitalized, or take medications at some point in our lives. As the landscape of the healthcare industry changes over time, so do its costs. If history is any indicator, they’ve only gone up. Be certain you’re not relying on your past health history. You need to be prepared for unexpected illness and injury. By saving for the “what if” you can take a lot of financial stress out of the equation when it does happen.
3. Living Longer than Expected
Life expectancy continues to rise as breakthroughs in medical science continue at a rapid rate. Individuals are living nearly a decade longer on average today than they were 50 years ago. The next generation of retirees could see that number rise another decade. Are you prepared to live another 20-25 years after you retire? Some are, but many are not and find themselves having to move in with their kids or reenter the workforce.
4. Poor Investment Positioning
You’ve heard it before, “If I’d only invested in Microsoft back the day, I’d be rich!” The majority of us have always missed those slam-dunk stocks and investments. The more logical approach for the average-joe investor is to diversify their portfolio to increase profits over time while minimizing losses. If this is you, however; don’t simply buy a buffet of popular stock options and then walk away for the next 25 years. You need to be actively involved in your portfolio. Constantly be reevaluating, researching, and seeing if your money is doing the best it can where it’s at. If not, take it out and put it in a place where you can realize better returns.
MAKE THE CHANGE FROM RISK TO PROTECTION
Being on top of your retirement funds can be time consuming, and even the best research and investment strategy is still subject to the whims of the market as a whole. We offer our clients protection against sudden market downturns that can negatively affect their retirement portfolio growth. If you need reliance, a rock solid-foundation to help reach your goals – give us a call today.
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San Antonio Office
6827 Camp Bullis Rd
San Antonio, TX 78256
Please send all correspondence to our San Antonio office
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