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FINANCIAL FOCUS
Be Aware of Challenges to Managing Retirement Income

hen you retire, will your cost of living decline? Some of
your expenses may indeed drop, but others won’t. Plus, costs, you’ll need a reasonable amount of liquidity in your portfolio.
Wyou may have some new ones to consider. So, all in all, it’s • Long-term care – You may never need to stay in a nursing home
a good idea to think about ways to boost your retirement savings now, or receive services from a home health care worker. But you are taking
before you’re retired. And once you do retire, you’ll need to be adept somewhat of a gamble if you don’t prepare for these long-term care
at managing your income. But whether saving today or planning for costs – because they are high. Medicare typically pays very little of
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lenges you will face during your retirement years. priate way of coping with these types of costs.

• Longevity – Obviously, the longer your retirement lasts, the more hasn’t gone away entirely, and it won’t disappear when you’re retired,
money you’ll need. And you could be retired for quite some time. A
65-year-old man, on average, is expected to live another 17.9 years,
while a 65-year-old woman can anticipate another 20.5 years, accord- to own at least some growth-oriented investments.
ing to the National Center for Health Statistics. With this type of po-
tential longevity in mind, you’ll want to contribute as much as you can during your retirement years, just as they did when you were working.

you’re working. Then, when you are retired and start tapping into your to withdraw from your investments when their price is down. However,
investment portfolio, you will need to create a sustainable withdrawal you can help avoid this necessity by maintaining enough income-pro-
rate – one that doesn’t push you into the “danger zone” of possibly ducing vehicles in your portfolio.
outliving your resources. By being aware of these issues, both before and during your retire-
• Health care – Once you enter your retirement years, your health ment, you can prepare for them – and preparation is key to managing
care costs are all but certain to rise, even with Medicare. In fact, the your income, as it is in all walks of life.
average annual out-of-pocket health care cost for a household between
This article was written by Edward Jones for use by your local Edward Jones
Financial Advisor.

Walton Living Magazine 35