Law Offices of
Hehr & Myers Co., L.P.A.
440-449-3266
4401 Rockside Road Ste 200
Independence, OH 44131
Race to Retirement!
1/10/08
Race to Retirement : A Marathon to the Finish
By Lindsay C. Jones, Associate Attorney of Hehr & Myers Co., L.P.A.
Saving up a nest egg to retire with is a long term goal, not unlike running a marathon. Getting to the finish line requires strategic financial planning, mental and fiscal endurance, and the ability to place your dreams of 'tomorrow' before your dreams of 'today.' Yet obtaining the lifestyle label of "Retired" isn't the end of the race.
Spending your retirement nest egg serves as the last leg of this marathon- it is also the most important and complex part of your planning. Spend your savings too quickly, and you'll find yourself left behind in the dust. Spend your savings too slowly, and you'll fail to take full advantage of your retirement. Adding more complexity is the fact that you are not the only runner entered in this race. You need to be able to keep pace with your competitors: inflation rates, emergency expenditures, even the costs of your actual post-retirement lifestyle. Given half a chance, these frontrunners will break out of your planning boundaries and beat you to the finish line, sabotaging your plans for a comfortable retirement.
To outrun the competition, remember to remain flexible with your spending allowance- continue to partially invest for growth, rather than simply preserving principal and reaping current income. Also consider: 1) The life expectancy, retirement age, and overall health of you and your dependants; 2) A realistic estimate of your expenses for day-to-day living, travel, emergencies, and gifting; 3) Taxes and inflation rates.
By running this race as a marathon, you will be in a better position to recover from financial setbacks, consistently take advantage of new investment opportunities, and achieve higher savings at a lower annual cost. Sprinting may get you to the finish line- but slow and steady wins the race.
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