Investment decisions are critical.
Coming up with an effective plan for spending your hard-earned retirement savings is a complex task. Here are some tips to get started:
First, you must make some important assumptions about your retirement years — starting with how long your money needs to last.
According to Jack Chmielewski, a principal and actuary with Milliman, “While a 65-year old male has a 30% chance of living past 90 and a 65-year old female has a 42% chance of living that long, the odds at least one of them lives past 90 approach 60%.”
In addition, consider your physical health, dietary and exercise habits, along with the life span of your parents and grandparents.
Then there’s your desired lifestyle. Along with your everyday living expenses, for some, retirement means a lot of travel and doing things you were too busy to do while working. For others, it means a lot of time in a cabin in the woods.