{"id":2477,"date":"2021-12-30T15:24:38","date_gmt":"2021-12-30T20:24:38","guid":{"rendered":"https:\/\/www.thewealthguardians.com\/staging\/3023\/?p=2477"},"modified":"2021-12-30T15:50:37","modified_gmt":"2021-12-30T20:50:37","slug":"facing-down-the-fear-of-running-out-of-money","status":"publish","type":"post","link":"https:\/\/www.thewealthguardians.com\/staging\/3023\/facing-down-the-fear-of-running-out-of-money\/","title":{"rendered":"Facing Down the Fear of Running Out of Money"},"content":{"rendered":"<body><p><\/p><em><img decoding=\"async\" class=\"wp-image-2478 alignright\" src=\"https:\/\/www.thewealthguardians.com\/staging\/3023\/wp-content\/uploads\/2021\/12\/1.14.22-BLOG-IMAGE-FOR-WEBSITE.png\" alt=\"\" width=\"501\" height=\"282\" loading=\"lazy\" srcset=\"https:\/\/www.thewealthguardians.com\/staging\/3023\/wp-content\/uploads\/2021\/12\/1.14.22-BLOG-IMAGE-FOR-WEBSITE-200x113.png 200w, https:\/\/www.thewealthguardians.com\/staging\/3023\/wp-content\/uploads\/2021\/12\/1.14.22-BLOG-IMAGE-FOR-WEBSITE-300x169.png 300w, https:\/\/www.thewealthguardians.com\/staging\/3023\/wp-content\/uploads\/2021\/12\/1.14.22-BLOG-IMAGE-FOR-WEBSITE-400x225.png 400w, https:\/\/www.thewealthguardians.com\/staging\/3023\/wp-content\/uploads\/2021\/12\/1.14.22-BLOG-IMAGE-FOR-WEBSITE.png 560w\" sizes=\"auto, (max-width: 501px) 100vw, 501px\" \/>Tips to avoid one of the biggest retirement worries that all of us will face<\/em>\n<p>Retirement is a major milestone that brings many life changes. One thing that doesn\u2019t change for most people: the fear of running out of money. In fact, one of the most frequently reported retirement worries is outliving savings and investments. And interestingly, this is a concern across all ages \u2013 many don\u2019t think they\u2019ve built a nest egg large enough to last through retirement.<\/p>\n<p>Now is the time to face your fears. Yes, there are a lot of ways you could go broke in retirement, but many can be averted with careful planning. Here are seven ways you could run out of money in retirement \u2013 and ways to avoid them.<\/p>\n<p>You could go broke in retirement if:<\/p>\n<p><strong>You Abandon Stocks Altogether<\/strong><\/p>\n<p>Yes, stocks are associated with risk. Just look at 2020 as an example. We saw an end to the longest bull-market in history, two market corrections, a legitimate bear market and then a spectacular bounce from the bottom. And all that happened in a single year. If you\u2019re retired, you might have been inclined to move your money out of stocks altogether and instead focus on preserving your wealth.But that might have been a mistake. The KEY is to minimize the downside risk with tactically managed strategies.<\/p>\n<p>Without stocks, you might not get the growth that you need. You need your money to continue to grow through those 20 to 30 or even 40 years of retirement to outpace inflation and help maintain your lifestyle.<\/p>\n<p><strong>You Spend Too Much Money<\/strong><\/p>\n<p>This one seems so obvious, but all of us are guilty of making this mistake (whether or not we\u2019re retired). And according to the Employee Benefit Research Institute, almost half of retirees spent more annually in their first two years of retirement than they did just before retiring. For retirees on a fixed income, this sticking to a budget becomes more important than ever.<\/p>\n<p><strong>You Abandon Insurance <\/strong><\/p>\n<p>Sure, eliminating costs in retirement is a good idea, but eliminating your insurance might not one of them. Having adequate health coverage is essential to helping prevent a devastating illness from wiping out your retirement savings. And don\u2019t just think about health insurance either.<\/p>\n<p>Whether you want to admit it or not, our chances of having a car accident increase as we get older. And one car accident-related lawsuit could drain your retirement savings.<\/p>\n<p><strong>You Plan on Just One Source of Income <\/strong><\/p>\n<p>In retirement, having multiple income streams is almost always better than just one. Think about this: many retirees consider Social Security to be their primary source of income, but do you worry that Social Security will be reduced or cease to exist in the future?\u00a0 And many retirees rely on pensions as a source of income, but how secure might that be? Or are you counting on a big inheritance?<\/p>\n<p>But when you include each of the above income streams are combined together along with what you saved for retirement, in 401(k)s and IRAs, then you have more stable and diversified income streams to rely on in your retirement years.<\/p>\n<blockquote>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thewealthguardians.activehosted.com\/f\/45\"><span style=\"color: #ff0000;\"><em><strong>CLICK HERE TO DOWNLOAD OUR FREE GUIDE: 5 Things Your Retirement Plan Must Include to Succeed<\/strong><\/em><\/span><\/a><\/p>\n<\/blockquote>\n<p><strong>You Forget About Taxes <\/strong><\/p>\n<p>Ok, maybe this won\u2019t make you broke, but without a smart withdrawal strategy you could end up losing more than you should. A more tax-efficient way might be to draw down the principal from maturing bonds and certificates of deposit first since they are no longer bearing interest. Then sell from your taxable accounts, for which you only have to pay the capital-gains tax and end with withdrawing from your tax-deferred accounts. The point is to review your strategy options for minimizing taxes.<\/p>\n<p><strong>You Don\u2019t Account for Where You Live or Vacation <\/strong><\/p>\n<p>Where you live impacts what you pay in taxes big time. That\u2019s why so many people move to Florida and Arizona after they retire. Besides the sunshine, both states are tops when it comes to offering more tax-friendly environments for retirees.<\/p>\n<p>But, if you\u2019re like most people who think about where to live, you\u2019re also probably imagining traveling during your retirement years. Make sure your finances can handle your trips because seeing the world isn\u2019t cheap. Plan carefully.<\/p>\n<p><strong>You Rely Exclusively on Bonds <\/strong><\/p>\n<p>In today\u2019s low- (or no-) interest world of bank accounts, increasing income can be a huge challenge. You either risk your savings in the stock market, which has a low dividend yield of about 1.5%, or you go into bonds.<\/p>\n<p>Except bonds might well be headed for trouble. If interest rates finally rise from today\u2019s historical lows, which his likely, bond values will decrease \u2013 maybe even substantially. You could end up with a big loss after just a small increase in rates.<\/p>\n<p><strong>How The Wealth Guardians Can Help<\/strong><\/p>\n<p>Running out of money is a big worry for many approaching retirement. And layering on the unpredictability of investing, you might ask yourself how you prepare your retirement portfolio for all of it? Well, one major key to successful planning for your retirement lies in following wise strategies.<\/p>\n<p>We understand these strategies and can be a great source for information about how to handle your money as you manage your retirement.<\/p>\n<p>The Wealth Guardians\u2019 role is to prepare for the best \u2013 and the worst \u2013 of anything. The world is just too unpredictable to do less.<\/p>\n<p>Let us show you in black and white a custom retirement income plan that is comprehensive, individualized and based on strategies that balance growth with downside protection. Get your <a href=\"https:\/\/www.thewealthguardians.com\/staging\/3023\/custom-retirement-paycheck-plan\/\"><span style=\"color: #ff0000;\"><em><strong>Custom Retirement Paycheck Plan<\/strong><\/em><\/span><\/a> now!<\/p>\n<p>Our <a href=\"https:\/\/www.thewealthguardians.com\/staging\/3023\/custom-retirement-paycheck-plan\/\"><span style=\"color: #ff0000;\"><em><strong>Custom Retirement Paycheck Plan<\/strong><\/em><\/span><\/a> shows how to protect your retirement from the risks of unexpected market swings, tax changes, and health care expenses using a mathematically tested strategy to create lifetime income allowing you to stop worrying about outliving your money and get on with enjoying the rest of your life.<\/p>\n<p><a href=\"https:\/\/www.thewealthguardians.com\/staging\/3023\/custom-retirement-paycheck-plan\/\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-2204\" src=\"https:\/\/www.thewealthguardians.com\/staging\/3023\/wp-content\/uploads\/2021\/05\/PBIO-Mock-Up-for-Weekly-Blogs-1.gif\" alt=\"\" width=\"600\" height=\"600\" loading=\"lazy\"><\/a><\/p>\n<blockquote>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.thewealthguardians.com\/staging\/3023\/custom-retirement-paycheck-plan\/\"><span style=\"color: #ff0000;\"><em><strong>&gt;Click here to learn more<\/strong><\/em><\/span><\/a><\/p>\n<\/blockquote>\n<p>Give us a call at our Charlotte office at (704) 248-8549, or our Clemmons office at (336) 391-3409. Or, <a href=\"https:\/\/www.thewealthguardians.com\/staging\/3023\/landing\/?inf_contact_key=dd827bb4650f0bf88549d4f30e9761d8\"><span style=\"color: #ff0000;\"><em><strong>click here to request a no-cost, no-obligation meeting<\/strong><\/em><\/span><\/a>.<\/p>\n<hr>\n<p><strong>[SOURCES &amp; ADDITIONAL DISCLOSURES]<\/strong><\/p>\n<p><em>Copyright \u00a9 2021 FMeX. All rights reserved. Distributed by Financial Media Exchange.<\/em><\/p>\n<\/body>","protected":false},"excerpt":{"rendered":"<p>Tips to avoid one of the biggest retirement worries that all of us will face Retirement is a major milestone that brings many life changes. One thing that doesn\u2019t change for most people: the fear of running out of money. [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":2478,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[109],"tags":[255,29,234,256,257,46],"class_list":["post-2477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement-planning","tag-budget","tag-income","tag-insurance","tag-spending","tag-stocks","tag-taxes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Facing Down the Fear of Running Out of Money - The Wealth Guardians<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thewealthguardians.com\/facing-down-the-fear-of-running-out-of-money\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Facing Down the Fear of Running Out of Money - The Wealth Guardians\" \/>\n<meta property=\"og:description\" content=\"Tips to avoid one of the biggest retirement worries that all of us will face Retirement is a major milestone that brings many life changes. 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