One of the biggest concerns we hear from those who are approaching retirement is the fear that their savings will not last long enough, especially if they get sick and need some form of long-term care. Our California asset protection lawyers have a number of suggestions for Boomers and seniors who want to be sure that they have a secure future. Here are a few planning strategies that we often recommend:
Be flexible with your spending
Instead of withdrawing a set amount of money annually, it may serve you better to stay agile and able to adapt to changing financial circumstances; what worked one year may not necessarily work the next year, or for any other year during your retirement. It’s important to consult with a financial professional and determine what your goals are for each year of your retirement and how best to achieve those goals with your retirement assets.
Don’t follow the 4% rule
One of the “tried and true” methods of retirement spending is the 4% rule which states that seniors should only spend 4% of their portfolio annually so that their assets will last. However, this approach is flawed because it does not take into account any negative changes in your portfolio that result from a poor economy, pandemic, or stock market crash, and it also does not consider the personal goals of a senior. For example, a senior at the start of retirement may be healthy enough to enjoy a fairly active lifestyle that involves traveling, while a senior nearing the end-of-life is not. A younger, healthier retiree who follows the 4% rule may not have enough money to do the things they want to and may end up
having regrets about missed opportunities when they’re older.
Wait until full retirement age to take Social Security
By waiting to receive Social Security until you’ve reached the full retirement age, you’ll get your full Social Security benefit. If possible, you can also delay even longer to receive more money, up to 35% more than the full benefit if you wait until age 70. By taking the benefit at age 62 when it’s first available, you will receive significantly less money from Social Security. It’s advised that you speak with a California asset protection attorney to discuss your financial situation and determine how long you can wait before you start receiving Social Security benefits.
If you have any questions regarding making your assets last throughout retirement, our attorneys are here to help. We can also help you proactively create long-term care plans so that if you do experience a health crisis or need a higher level of care, your assets stay protected as much as possible from the reach of nursing homes or the government. To set up an appointment at one of our offices located throughout the state of California, call (800) 244-8814.