We all want our money to last.
The fact is you may not have a clear answer. You may be unsure if you will have enough money to maintain your lifestyle and it is probably making you anxious, worried, and overwhelmed. You don’t know what to do, and have no clear direction, so you are not living the worry-free life you imagined.
Here are five things that will determine how long our money will last:
- When you will start drawing on your money – if you don’t need to start drawing from your savings for a while, there is more time for it to grow.
- Inflation – inflation reduces the purchasing power of your savings. If you don’t keep up with inflation, your money will end up buying less in the future than it does now.
- Rate of return on savings – if your savings grow more it should last longer.
- How much you will be taking out – the more money you take out, the shorter the lifespan of your savings.
- Volatility – If you need to draw money from your equities when they are down, their long term growth potential will be heavily impacted. Through proper planning and asset allocation, you can set aside savings in safer vehicles in order to plan for these times.
One of the most common questions we hear regarding your investments is “Will my money last?” Our job is to answer the question and provide guidance to make sure the answer is positive.
Luckily, you don’t actually need us right away to get some answers and determine what your financial future looks like. We have provided our free “Will My Money Last” calculator for you to use.
It is important that you feel confident and clear about your financial foundation moving forward. Living in a state of worry and anxiety drains your peace of mind in confidently living out your dreams.
We hope that this calculator will answer some of your questions and give you the first few steps toward establishing your financial plan. If you have any questions about our calculator, or on providing even clearer answers through a personal financial plan, please contact us.