• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 5. Goal-Oriented Retirement Plan... > Do You Want to Have Leftovers?

Do You Want to Have Leftovers?

One of the more sensitive areas for us to cover is inheritance and the way that impacts GORP. If it is important to you to leave assets to children, grandchildren, religious organizations, or others, you need to plan that as one of your goals. You also have to decide if you want to deplete your assets as your life expectancy reduces over the years or if you want your assets to remain stable over your retirement whereby you live off the interest alone. It is very expensive to live off interest, and most people won't be able to afford this option.

It is wise, however, to create a life expectancy emergency fund. Here's how that would work: You and spouse determine that your combined life expectancy is 27 years. But what if you live beyond 27 years? The goal of the life expectancy emergency fund is to ensure that if you live beyond your life expectancy, you have income to meet your needs. You can do this by having sufficient assets to produce the necessary income, or you can buy an income annuity that guarantees a certain amount of money for the rest of your life. Either way, you need to identify it as a goal and properly fund the goal.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint