Content provided by Copia Wealth Management & Insurance Services
Do you ever feel like no matter how much money you make, you cannot seem to keep up with the expenses of life? Greater age seems to come at a cost. Literally. Here are some things to consider as you prepare for your golden years.
It’s not what you think.
In general, people tend to underestimate the amount of money they spend on a monthly basis. Because of this, they have an even harder time estimating the amount of money they will need in retirement; and all this before even considering the costs of inflation.
For example, the average annual expenditures of a typical San Diego household in 2009 and 2010 was $52,012. In 2018 and 2019 that number jumped to $77,451. Imagine what that number will be by the time you’re ready to retire!
This is why, when planning for retirement, it’s important to have a realistic idea of your expenditures and begin saving more than you think you’ll need. Otherwise, you’ll end up wondering where all of your hard-earned money went.
Can you pay my bills?
While inflation can have a positive impact on the economy as a whole, it tends to also leave many individuals struggling to keep up. While the rich get richer, the poor get poorer. When inflation occurs, the middle class tends to get hit the hardest, as the real value of their income diminishes. Variable interest rates on items like credit card debt are likely to see increases in their minimum payments as inflation rises. And while Social Security benefits get periodic costs of living adjustments (COLAs), they don’t always keep up with inflation.
I want to live forever (maybe?)
Ongoing medical research and an increased personal focus on health and well-being means people are living longer than ever before. While it’s still rare to live to be 100 years old, chances are that many of us will live well into our 90s.
And while we hope to have larger expenses like mortgages or student loans paid off by the time we retire, many of us will not get that opportunity. From 1999 to 2019, debt among Americans over the age of 70 increased 543 percent, with one in seven bankruptcy filers being over age 65.
Unpaid debt, new medical expenses, and longer life expectancies are causing many retirees to run out of money fast. Will you be ready for a 30-year retirement?
Let us help you better prepare. Call us at 619-640-2622 or visit copiawm.com to get started today! It’s never too late or early to get started!
President & CEO
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Investment advice offered through Copia Wealth Management Advisors, Inc.
Copia Wealth Management Advisors, Inc., is a registered investment adviser.