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

Jeff has over 30 years of experience in the investment industry. He currently holds his FINRA Serices 6, 63, 66, 7, 24 & 51 licenses with LPL Financial as well as his health and life insurance licenses.