What Financial Planning Can Do for You

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At retirement your whole financial life essentially comes down to one binary question. . . Is your money going to out live you, or will you outlive your money?

Hi, this is Phil Calandra with Calandra Financial. At retirement, your whole financial life essentially collapses down to one binary question. It is, of course, “will your money outlive you or will you outlive your money?” Most of the people I meet professionally are not sure which retirement outcome they’re going to get …in part because they didn’t know that’s the overriding question.

A non-smoking couple of average retirement age which is 62 has a joint life expectancy of 30 years. In plain English that means the second person will pass at age 92. I caution you that like all actuarial numbers it’s just an average.

At trendline inflation of three percent, therefore the cost of living will rise nearly two and a half times in those thirty years. That is it will cost about two dollars and forty cents in the thirtieth year of retirement to buy what one dollar bought in the first year. If you haven’t got a plan to increase your income about as much as your living costs go up in retirement, then you may in effect have a plan for running out of money.

My mission in life is to help people make the right kind of plan. It’s a much less complicated conversation than you might expect and in a moment or two I’ll invite you to have that conversation with me. For now I leave you with one thought and two statistics.

First, the statistics:

Just since 1960 to pick a time frame that takes into account the lifetime of most everyone who’s not retired yet, the consumer price index has compounded at its long-term trend rate of close to 3 percent. The dividend just the cash income of the S&P 500 stock index compounded at 5.9 percent. Now the S&P 500 is made up of that number of the largest best finance most profitable companies in america and the world. And what i’m telling you is that taken as a group those companies have been raising their dividends at something close to twice the inflation rate for as long as you’ve been alive. Those are the two statistics and here’s that one thought rising dividends are one important way smart people have kept their retirement incomes growing well beyond their living costs.

I will be happy to meet with anyone watching this video to discuss this or whatever is of financial concern to you and your family.

Thank you for watching.

I’m Phil Calandra and you’ve been on the Retire Road.

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As an independent wealth management firm, we represent only the interests of our clients — not those of a corporation or bank. We are committed to guiding those we serve towards and through their retirement years in the smoothest, most comfortable way possible. Investment Advisory Services offered through Calandra Wealth Management, LLC a Georgia Investment Advisor.

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