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6 Risk Factors of Retirement

published by Sharon Kirkconnell

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6 Risk Factors of
Retirement
Are you a worrier or worse yet do you live with one?  Do you worry about things you cannot influence or control? If so, what a waste of time. Right?  Why clog your head with things you can’t control.  If you are planning to retire one day or are already enjoying retirement, there are 6 factors that you need to be aware of but only 4 that you should spend energy on.
Factors out of your control
Market Returns
Policy
Stay informed, but do not obsess! You cannot control the market.
Can you control it?
Social Security, tax code, government initiated policies
Don't worry about it!!
regarding taxation, savings, and entitlement
Tax
Factors with some control
How long you live can have a direct impact on your financial success. A short life span can hurt your family and living too long, well, it can hurt your family too! I guess you can’t win on this one. Should you worry about it? I say no.  Make sure you don’t put your family in a bad spot either way and then focus on your mental and physical well-being.  Enjoy life!
This can be a tough one.  If you are in the oil and gas industry right now the word “layoff” is looming large.  In a perfect world you could decide how many years you want to work and choose when you want to make a job change.  In most cases this is how it works but not all.  Don’t worry.  Put yourself in a position to weather unintended job changes and put the worry behind you.  As you work toward retirement, adjusting how many years you work can make a big difference in your likelihood of success.  Use your control over how long you plan to work as a planning tool but always be prepared for someone else to force you to change your plans.
Longevity
Employment
Factors with total control
Spending & Saving
with no real pain.
10%
I already discussed that you cannot control the market and shouldn’t worry about what it does today.  However; you can influence the way your portfolio moves based on the market by dialing up or down your risk.
Most of us can cut back expenses by
Portfolio Risk
Take control and focus on the things you can influence or control completely.
Consider hiring a financial advisor to help you with the money stuff and then focus on controlling the enjoyment of your life!
Sometimes, taking control will help alleviate the worry and sleepless nights.  Realize that you will never be able to control everything and work on giving up that control.
Byron W. Ellis, CFP®, CLU®, ChFC®, is a CERTIFIED FINANCIAL PLANNER™  professional and Managing Director of United Capital Financial Advisers, LLC, a Financial Life Management firm.  The information contained in this document is intended for information only and is not a recommendation, and should not be considered investment advice.  Please contact your financial advisor with questions about your specific needs and circumstances.  The opinions expressed herein are those of Byron Ellis and not necessarily those of United Capital Financial Advisers, LLC.  Investing involves risk, including the possible loss of principal.