Planning With A Long-Term Horizon In Mind
Submitted by S. F. Ehrlich Associates, Inc. on May 14th, 2018
May 15, 2018
"I'm not going to live past 80! I know it. My Mother lived to 82, Dad died at 72. Longevity doesn't run in my family. Plus...who wants to live that long anyway?!" I’m sure many of you have either uttered these words yourself or at the very least heard a friend or family member say them. Digging into the underlying data, one might be surprised to see how long people are living these days.
Reviewing the table below1, for a 65-year-old couple, there’s a 74% chance that at least one of them makes it to age 85 and there’s a nearly 50% chance that at least one makes it to age 90.
Many of the choices we help clients make center around life expectancy, including decisions involving life insurance, Social Security, portfolio investment strategy, pension payment options, and many more.
Some may not see the prospect of long life as welcome news. Occasionally clients will cringe when we mention the concept of living until 85 or 90 years old, as we force them to revisit (sometimes not so fond) memories of their loved ones at these ages. However, as your financial advisors, we’re here to help you make decisions that hopefully lead to an overall positive experience at this stage of life, whether that means having extra funds to get the care you need or having extra time to play with the grandchildren. The planning decisions you make today can pay significant dividends down the road.
1 “Guide to Retirement: 2018 Edition.” J.P. Morgan Asset Management, 2018 edition.
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