Which is worse, Outliving your money or death?

24 Nov 2014

The answer may surprise you!

A new survey from Wells Fargo shows 22% of people say they would rather die early than not have enough cash to live comfortably in retirement. Another survey by Allianz Life shows that 77% of people in their late 40’s worried more about outliving their money in retirement than death itself.  There is no question that this speaks of the overwhelming fear people have of outliving their money. There is a way around this and it is far easier than you may think. Have a plan! Let me say it this way. We believe (in our opinion) those people who have completed a Financial Plan or Retirement Income Analysis have a heightened sense of financial confidence as they grow older. In other words, the worry of running out of money in retirement is less for those who have a plan in place.

There is no guarantee but without a plan every fear thrown at us (Y2K, fiscal cliff, debt downgrade, Ebola) becomes a reality and creates a tremendous amount of doubt. This doubt will lead to fear and the fear will typically lead to repeating bad investment behavior. As alarming as it is the next result of the study explains why they are scared. The study shows 41% of those in their 50’s are not putting anything aside for retirement and 48% admit they will not have enough money to survive in their golden years. Please pause and reread that last sentence. You see there is a direct correlation between not saving money at all and an increased fear over outliving your money (I am trying to be sarcastic or as my children call me… captain obvious!). If you save nothing you should be concerned. However if you can start with something and save aggressively over time your levels of stress should decrease. The sooner you start the more you should have to enjoy later in life. I would hope sitting on a beach somewhere is much more fun than golfing with the Grim Reaper.

Good luck!

Jeffrey A. Johnston, ChFC
President of Premier Investments of Iowa, Inc.

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Premier Investments of Iowa, Inc. are not affiliated.


Jeffrey Johnston

Jeffrey is originally from Solon, Iowa. He currently resides in Swisher, Iowa with his wife, Prudence, and his three children, Seth, Ian, and Roman. He graduated from the University of Northern Iowa in 1989, where he majored in Finance and Investments. He has 24 years of experience in the investment and estate planning business. He is currently the President of “Premier Investments of Iowa, Inc.” Jeffrey’s main focus is Estate and Investment Planning for Senior Citizens and Pre Retirees. Jeffrey became a Chartered Financial Consultant (ChFC) in 2001. He is the author of many articles on industry related topics and he is a frequent seminar presenter. He is a Board Member TRIAD Linn County Seniors Against Crime, and he is also a past Board Member of the Heritage Area Agency on Aging Task Force. He is a member of CEO Roundtable in Cedar Rapids, a Daybreak Rotary Member, and a member of the Cedar Rapids Estate Planning Council. In March of 2009, Jeffrey became the host of the Premier Investments of Iowa Financial Hour which airs every Tuesday Evening from 6PM -7PM, on WMT 600 AM Radio. In his free time he enjoys golf, fishing, scuba diving, traveling, and coaching son’s basketball teams.