Imagine getting in your car to start a long road trip. Before you leave, you probably enter your destination in the GPS. As you drive, you pay attention to the device and follow all of its instructions. And yet, you somehow end up at the wrong destination.
How does that happen? Pretty easily if you input the wrong destination. Plans are dependent on their inputs and assumptions. It doesn’t matter how closely you follow the plan if the plan itself is built on faulty logic.
What will your sources of income be in retirement? If you’re like many retirees, you will depend on Social Security to an extent. You may be fortunate enough to have an employer pension. To cover any gaps, you will likely have to take distributions from your personal savings.
Even with these combined income sources and more, you still may find yourself living on a fairly tight budget. Many retirees are comfortable and are able to pursue their favorite activities, but they’re also only one unexpected cost away from being in a challenging financial position.
Principal of BAM Advisory Group