Retirement is a balancing act. You want to spend enough to enjoy today, while preserving enough to take care of your needs tomorrow. If you keep things in balance, there is no reason you should run out of money. So what throws people off balance in retirement? Here are five things people do that puts them at risk of running out of money.
No measuring device. Imagine driving across the country with no fuel tank gauge. How often do you stop for gas? I suppose you’ll have to guess. If you approach retirement income this way, you can get yourself in trouble. You must have a monitoring system in place.
This type of system measures how much you have left, your income needs, uses a conservative rate of return based on your investing style, and takes into account remaining life expectancy. Your retirement income gas gauge isn’t only there to tell you when to slow down — it can also tell you when there is room to step on the gas.
To read four more ways you put yourself at risk in running out of money during your retirement, visit Yahoo.com.Â
