Page 10 - Mumme Booklet
P. 10
DRAFT
WHAT ARE THE RISKS THAT CHALLENGE
FINANCIAL SECURITY IN RETIREMENT?
The goal of retirement planning is to help ensure that you have the financial resources to
maintain your lifestyle throughout retirement. Even the best-laid plans may be subject to
challenges. For this reason, it's important to plan for the six risks every retiree faces:
1. LONGEVITY 4. HEALTH CARE
A couple age 65 has a 1 in 10 Health care costs have risen
chance that one of them will between 6% and 8% over each
live to 100. of the last 20 years.
2. MARKET VOLATILITY 5. LONG-TERM CARE
Since 1945, the S&P 500 has 70% of people turning age 65 will
averaged a correction of at least need some form of long-term care
10% about once every 18 months. during their remaining lives.
Source: S&P Capital IQ, "Outlook 2014: Source: LongTermCare.gov, Who Needs Care?
Good Years Often Follow Great Years"
us.spindices.com
3. INFLATION AND TAXES 6. LEGACY
An average inflation rate of 4% will Spending down assets in retirement
cut your purchasing power in half can diminish the financial legacy
in just 18 years. intended for family or a charity.
23-0116-07 (1209) (REV 0315)
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This plan is not complete without the Assumptions and Disclosures pages appearing at the end.
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