Latest News / Retirement in Sight - September 2017
Retirement in Sight - September 2017
October 2, 2017
Retirement Calculators May Not Add in Everything
You may turn to an online retirement calculator for a simple snapshot of your retirement income needs and your retirement savings progress. These calculators are everywhere and so easy to use – but just how realistic are their projections?
In truth, not very. They fail to consider many variables. While they may have you enter your present salary, the percentage of income you want to replace in retirement, your estimated retirement date, and the rate of return for your investments, they ignore things like taxes (especially with regard to retirement account withdrawals), relocation expenses, health care costs, inflation, and your Social Security claiming strategy. Even their basic calculations can vary: input the same data into three different calculators, and the amount that you are supposed to save for retirement can vary by as much as $300,000-$400,000. So, use one or more retirement calculators to run some numbers, but confer with a financial professional you trust to tackle planning for the factors these basic tools cannot address.1
Friends and Family Ties May Make a Big Difference After 65
Gerontologists, mental health professionals, journalists, and retirement planners are starting to recognize loneliness as a retirement hazard. AARP, in fact, now has a website (connect2affect.org) focusing on the issue and the resources that can help to counteract it.
From its research, AARP estimates that 17% of Americans over 65 are cut off from meaningful social interaction. This lonely state raises the risk of mortality by 26%, the organization concludes. It is all too easy to end up alone for some or all of retirement – in fact, 51% of Americans aged 75 and older live by themselves. In addition, the country has about 6 million seniors (defined as age 65 and up) who cannot leave their homes due to disabilities. To ward off loneliness, think about relocating to (or spending more time in) a livelier neighborhood or following athletic, social, or creative interests in the company of others.
On the BRIGHT SIDE
In a recent Allianz Life survey of U.S. consumers, a majority of respondents thought consumer prices would rise more than 4% a year during their retirement. Over the past 20 years, however, yearly inflation has averaged just 2.15%.3
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
1 - fool.com/retirement/2017/09/10/why-you-shouldnt-rely-on-a-retirement-calculator.aspx [9/10/17]
2 - foxbusiness.com/features/2017/09/03/tips-for-baby-boomers-on-how-to-deal-with-loneliness.html [9/3/17]
3 - foxbusiness.com/features/2017/09/10/inflation-and-your-retirement-realities-vs-myths.html [9/10/17]
4 - list25.com/25-strange-and-interesting-bits-of-trivia-about-our-world/ [2/20/14]
Check the background of this investment professional on FINRA’s BrokerCheck
Located at: 600 E 84th Avenue Merrillville, IN 46410
Phone: (844) 755-6600
Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Individuals affiliated with this broker/dealer firm are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.
These products and services are being offered through Cetera Investment Services LLC or its affiliates, which are separate entities from, and not affiliates of, Centier Bank or Centier Investments. Securities and insurance products offered by Cetera Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency.
This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at www.ceterainvestmentservices.com