Broker Check

 INVESTMENTS

If you want to hold onto your assets and live your desired lifestyle, in most cases you'll need to keep your assets growing and use that growth to fund your retirement needs. Planning is the key to a successful financial life in retirement; plan for higher inflation, plan for more taxes, plan for larger expenses, plan for a longer life, and plan to keep your money growing.


5 REASONS YOUR FUNDS NEED TO GROW

1. Inflation takes its toll. Inflation is the annual increase in the price of goods and services. If you are paying $100 each week for groceries today, in 10 years, with 3% inflation, you'll be paying $134. At 5% per year, inflation will raise your weekly grocery expense to over $160.

Inflation is very individual and depends on where you live and your lifestyle. No one can predict what inflation will be in the future. In 1979 and 1981, inflation was running between 10% and 13%, in 2009 inflation became deflation, meaning many goods and services cost less than the year before. Over the last 10 years, it's been around 2.70%. You can be conservative in your financial planning by using a higher number for the future inflation rate. You can also evaluate how inflation is really affecting you and your lifestyle, then use that data to project your situation. Your money has to keep growing in order to keep pace with your needs for its buying power.

2. Taxes are forever. Your tax bill is going to change throughout your life, and it is possible that tax rates may be higher in the future. No one knows exactly what your taxes may be 10 years from now, but it is certain that there will be taxes of some kind. Some of the deductions and exemptions you claim today to reduce your tax bill may not be available to you later in life. For example, your home mortgage may be paid off, and your children or parents will no longer be dependents. Plan to keep your money growing so that potentially higher taxes won't limit the quality of your retirement.

3. Future expenses may be underestimated. You may have been too conservative in your estimate of how much you will spend in retirement. You may find that you want to spend more money on travel, or you may like to dine out at restaurants more often. You may need to replace your car or put a new roof on your house sometime during retirement. Then there's health insurance and health-care costs. As you age, you may need some type of assistance with daily living. If you keep your money growing, you'll be able to meet higher expenses later in life.

4. You can't take it with you. You may want to leave money to your children, grandchildren, other heirs, your community or to a charitable organization. Keeping your money growing will help create that legacy.

5. Live long and prosper. People who are 65 years old today will live, on average, another 18 years (or longer if you take good care of yourself). With continuing medical advances, it's likely you may live even longer. Have you planned to have enough money to make it to age 90 or 100?

At SRS Wealth Management, Inc. we strive to put your needs first. If you've lost money over the last 5 to 10 years and your just breaking even or still behind. Maybe it's time to look at how our strategies have netted zero losses over that same period with compounded annual returns much higher than inflation, cd's, or saving accounts returns. Give us a call at 740-242-0173 for a free, no obligation investment consultation.