Retirement and 401k News

This Simple Step Can Address Your #1 Retirement Fear


October 28, 2019 –  Forbes


Did you know that only 20% of people are worried about dying vs. 58% of people are worried about running out of money in retirement? In fact, running out of money in the future is Americans' #1 financial fear. It makes sense when you think about it – people are great at avoiding thinking about unpleasant issues that they don’t need to deal with now (like dying), but the whole financial services industry is interested in cranking up your anxiety level about running out of money since it leads to people saving and investing as much as possible and that leads to more fees for them.

So don’t feel bad – there is a lot of money being spent to dial up the fear level and then funnel you into a system that makes it hard to take control of your future.

This Simple Step Can Address Your #1 Financial Fear

One simple thing people can do to address their fear of running out of money in the future is to build a retirement plan to get educated and take control of their finances.


There are several reasons this is a good idea:

First: Life is short and having a plan helps you make the most of it. The average person has about 4,000 healthy weeks of life (assuming you remain healthy through 80 years old). If you’re around 50 then you’ve lived about 2,600 weeks. Around this age, many people start looking at their time as a scarce resource and try to use it accordingly – focusing on people, activities, and work that has real meaning to them. You may even want to build a bucket list.

Second: Your family is counting on you. Getting organized pays big dividends for your children and parents no matter how much money you have. If you make smart choices you’ll have more assets to help them and also make their lives a lot easier if something happens. There are often big benefits for your spouse if you claim Social Security in a way that maximizes survivor benefits. I recently hosted a podcast with Cameron Huddleston about the big benefits of doing intergenerational planning with your parents.


Third: Your wealth will appreciate it. People with a financial plan are twice as confident as those without one.


There is a lot to be gained by making smart choices around the big decisions you’ll face.

  • Where to retire – this is a huge driver of your long term expenses, taxes, and happiness. The average household has half their net worth tied up in home equity, so relocation can create opportunities to unlock this source of wealth.

  • Savings & Investing – it’s worth assessing whether your investments are aligned with your goals. If you are over 50 there are also IRS catch up provisions for most qualified accounts like 401(k), IRA and 403(b) accounts.

  • Withdrawals & tax efficiency – as you transition into retirement there can be opportunities to reposition assets into more tax-efficient accounts (like Roth IRAs) and be smart about drawing down your assets in a way that minimizes your taxes.

  • Social Security & Medicare – these twin pillars of everyone’s retirement require big decisions about how to claim them, so it makes sense to invest the time to think this through.


How to build a plan


Work with a finanical professional to build a plan that offers key benefits across:

  • Getting organized for yourself and your family

  • Seeing your net worth today and over time

  • Building a projection of what your retirement income will be and what drives it (such as Social Security, part-time work, any pension, Required Minimum Distributions (RMDs)

  • Seeing what your expenses are likely to be based on your current lifestyle, future moves, healthcare, and taxes

  • Getting help thinking through Social Security and Medicare claiming strategies

  • Exploring “What If” scenarios – for example, what happens if you retire at 60 vs 65, work part-time at 55 or move abroad for a few years

  • Making smart choices around the things you can control (savings, investing, when you retire, where you live) and understanding your options to manage the risks you can’t control (inflation, market returns, and longevity)


The only thing you can count on is change and a great way to embrace that is to build a plan that you can manage over time as the world evolves around you.


This article was written by Stephen Chen from Forbes and was legally licensed by AdvisorStream through the NewsCred publisher network.

Disclaimer: Material is for informational purposes only and does not constitute an offer to buy or sell any product. Past performance and any forecasts are not indicative of future results. This material was prepared and views are those solely of the author and does not necessarily represent the views of the presenting party, nor their affiliates. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. Direct investment in an index is not possible. Asset Strategy is unaffiliated with third-party sites, cannot verify the accuracy of, nor assume responsibility for any content of linked third-party sites. The information available on third-party sites is for informational purposes only.All information provided is for educational purposes only. The material herein does not constitute an offer to sell nor is it a solicitation of an offer to purchase any security. Offers will only be made through a private placement memorandum to accredited investors (typically have a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years), or through an offering circular to qualified investors, and where permitted by law. Investments in any security are not suitable for all investors. Investments in securities involve a high degree of risk and should only be considered by investors who can withstand the loss of their investment. Prospective investors should carefully review the “Risk Factors” section of any private placement memorandum or offering circular. Investors should perform their own investigations before considering any investment and consult with their own legal and tax advisors. Past pricing structures may not be indicative of future pricing and may not result in positive returns. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Asset Strategy Advisors, LLC (ASA), an SEC-registered investment adviser. Insurance services offered through Charles River Financial Insurance Agency, Inc. (CRFG). CIS, ASA, and CRFG are separate companies, all of whom are independent of Forbes.

The information in this communication or any information within the Asset Strategy Advisors, LLC domain, and or any attachments to any AdvisorStream communication is strictly confidential and intended solely for the attention and use of the named recipient(s). If you are not the intended recipient, or person responsible for delivering this e-mail to the intended recipient, please immediately notify AdvisorStream at and destroy all copies of this e-mail. Any distribution, use or copying of this e-mail or the information it contains by other than an intended recipient is unauthorized. This information must not be disclosed to any person without the permission of AdvisorStream LTD. Please be aware that internet communications are subject to the risk of data corruption and other transmission errors. For information of extraordinary sensitivity, we recommend that our clients use an encrypted method when they communicate with us.