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78 Don’t Make Me Say I Told You So

work

This shift is intended to protect principal, because you can’t

go back to working for decades and earn that money again. I

think that this advice is archaic and outdated. As mentioned in
Chapter 1, retirement has changed dramatically over the last

50 to 60 years. In past decades, retirees only had to make their
investments last for 10 to 15 years. With a lifetime pension from

the company and Social Security for both the husband and
wife, it was not a great feat to make retirement savings last for a

decade. Now, people are both retiring earlier and living longer.

You may live longer than you expect

People are living longer because they’re healthy, active and taking better care of themselves
65-year-old man 65-year-old woman 65-year-old couple

REPLACE WITH CHART #143 YOU MAY LIVE LONGER THAN
50% chance of
YOU EXPECT. IT'S IN OUR SHARED DROPBOX FOLDER.
85 years
88 years
92 years
living to age:
92 years 94 years 97 years
25% chance of
living to age:

an approximately
Source: Fidelity Investments, “5 Ways to Protect Your Retirement Income,” 2014.

For a 65-year-old couple, there is a 50% chance that you or

your spouse will live to age 92. There is a 25% chance that one
of you will live to age 97. Although everyone says, “I’m not going

to live that long,” many of you will. You need to plan for that. It

Chapter 3: You Must Have Growth In Your Portfolio