What Risks Should Your Retirement Plan Prepare For?
Ask someone about risk, and they might picture jumping out of an airplane. Kristen would tell you that is not for her. She did let me talk her into parasailing once, but I doubt there will be a second time.
In retirement, some of the biggest risks are less obvious. A market downturn gets your attention, especially when you are withdrawing money to cover expenses. But inflation, taxes, healthcare costs, and the possibility of living longer than expected can also put pressure on your savings.
These risks work together. Rising prices may require larger withdrawals. Taxes can reduce how much of that money you keep. Unexpected medical expenses can stretch your budget, and a longer retirement means your income needs to last longer.
That is why I believe retirement readiness takes more than a healthy account balance. A written plan should connect your income, spending, and investments while preparing for changing needs. It cannot eliminate every risk, but it can help you make thoughtful decisions as life changes.
If you would like another perspective on your retirement plan, you can reach our team atLegacyRetirementGroup.com.