How Long Will the Money Last

 

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by Michael Velazquez

 

“There are times when you run a marathon and you wonder, why am I doing this? But you take a drink of water and around the next bend, you get your wind back, remember the finish line, and keep going.”

An incredibly fit, silver haired couple with perfect teeth is walking along the beach in their short shorts, with a beautiful Golden Retriever alongside. The couple appears to not have a care in the world, and their whole universe is in balance. This hopeful association is what some TV ads want us to project ourselves into, to feel like one of these characters. They hope we conclude that we need their product or service to be happy, just like the subjects are in their retirement commercial.

How long will my money last is a question that worries most of us as we plan for retirement. There are as many answers as there are retirees. In other words, there are plenty of ways to get there, each unique to the individual. Retirement is like any other stage in life, except it has a few more uncertainties than others. The more we understand the process, the better we can rest assured we are approaching our “Golden Years” with sense and grace.

Luckily, when it comes to retirement, you have choices!  Your Dream Retirement should reflect the person that you are. You simply must do two things:  1. Be flexible. 2. You must plan. This all has to do with the math behind your plan, the inflows and the outflows. Inflows have to do with the kinds of assets you have going into retirement. Outflows are the kind of lifestyle you need to maintain in retirement.

You don’t have to buy someone else’s dream. Most of you reading will likely have assets that will produce income in retirement. My point here is that the math of retirement is not entirely different than whatever life stage you are in now. To live within your means, save some for a rainy day, and build yourself some cushions, are processes that successful retirees have been doing already.  “Build your own Dreams, or someone else will hire you to build theirs.” It’s a lot more fun to build your own!