How To Avoid Running Out Of Money When You Retire

This post is sponsored by Fisher Investments.

Just about everything lasts longer these days: cars, light bulbs, commercials, gum, even our lives. And with longer life expectancy comes a longer retirement.

Surprisingly, not enough investors take the time to consider whether their savings will hold out for as long as they need. Investors who don't have well-defined objectives, or a real sense of how long they'll need their money to last, can run the risk of coming up short in retirement.

To see if you're ready, there are certain questions you should ask yourself:

How long will I need my retirement savings?

In most cases, investors need their savings to last as long as they do, but a lot of times it can be even longer. For those planning to leave their portfolio behind to support a younger spouse, children, or charity, failing to plan properly for retirement can be catastrophic. As average life expectancy continues to rise, it's smart to plan for a longer retirement early.

Am I underestimating how much cash flow I'll need after retirement?

Maintaining your lifestyle in the future can become much more costly if your expenses are tied to goods or services with fast-rising prices, such as healthcare. Overall, inflation has averaged roughly 3% annually**, and investors who fail to account for inflation will be faced with a significant hole in their savings.

Fisher Investments' 15-Minute Retirement Plan can get you started on the right path. If you have a $500,000 portfolio, download the guide by Forbes columnist Ken Fisher's firm. Even if you have a retirement plan in place, this must-read guide provides research and analysis you can use right now.

Download the guide now »

**Source: Global Financial Data, Inc., as of 1/18/2013. Based on US BLS Consumer Price Index from 1925-2012.

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