Financial Preparedness, Physician Lifestyle, Retirement

Make sure your money lasts as long as you do

April 17, 2013


According to a July 2011 Employee Benefit Research Institute study (EBRI), nearly 47 percent of early baby boomers are at risk of outliving their retirement savings.1 That would leave Social Security as their major source of income, and that is not considered an adequate source of 100 percent of retirement funds.2

To avoid being among that 47 percent, it's important to develop a strategy that will help you meet your specific financial needs for the rest of your life. Such a strategy should be developed with the help of a financial professional.

Here are some "must do's" when financial planning for retirement:

  • Make sure you understand if your sources of income are sufficient to meet your ongoing expenses. If your savings might not be enough, consider other options to supplement your income - such as a part-time job. Develop a plan you're comfortable with, that is projected to generate the income you need.
  • Make sure you continue to review and adjust the asset allocation of your nest egg. Upon retiring, individuals typically shift to a more conservative allocation - to protect their holdings - while still trying to produce the needed income from their portfolio. This is the domain of your financial advisor. Confer with him or her regularly to determine the appropriate asset allocation.
  • Develop a withdrawal strategy. This is a critical factor in building an effective retirement strategy. Withdraw too much and you’ll outlive your assets. Withdraw from the wrong sources, and you may incur penalties or additional taxes. Take too little and you may find yourself doing without.

Of course, none of this is new or groundbreaking information. It's simply a reminder of the importance of planning for the maintenance of your preferred lifestyle. For many of us, the future is almost here.

To locate an independent financial professional near you, call AMA Insurance's Physicians Financial Partners at 1-855-210-4015, 8:00 a.m. to 5:00 p.m. Central Time, Mon.-Fri., or email PFP@amainsure.com.

Based on Sept. 18, 2012, PR Newswire press release: 
Boomers Risk Outliving Their Retirement, BMO Harris Financial Advisors, a part of BMO Financial Group

1 Towers Watson, July 2011, Prevalence of Retirement Plan Types in the Fortune 100 in 2011 
2 www.socialsecurity.gov/pubs/10035.html?vm=r

 Follow us on Twitter »

Please note:

By clicking "continue" below you will be taken away from the AMA Insurance Agency, Inc. website.

Do you wish to leave this site?

cancel Continue