Expert Advice

Planning for Retirement

• Outliving Your Assets
• The Need To Supplement Your Income
• The Cost of Retirement
• Inflation

Outliving Your Assets

You've finished your career. Now you're looking to enjoy the fruits of your labor. The wealth you've accumulated is significant, perhaps more than you thought possible. But is it enough? Will it last?

Those questions become more pressing as Americans tend to retire younger and live longer than ever before.

According to the U.S. Bureau of Labor Statistics, the average length of retirement has increased from 7 years in the 1950's to over 20 years today.

By setting up a retirement plan with your investment professional, you can help ensure that what you've worked so hard to accumulate will be there to provide for you when you need it most.

Find out if what you're saving now is going to be enough to fund the retirement you have in mind - contact Judy Mankin * at Agency Associates Financial Services at 317-704-8308 or toll-free at 877-647-2242.

The Need To Supplement Your Income

Nearly 3 out of 4 Social Security recipients rely on Social Security for at least half of their retirement income.

But considering that the average monthly Social Security benefit in 2003 was $922.10, 1 relying heavily on Social Security may not be a good idea.

Many will have to rely on sources other than Social Security to provide their income in retirement, as Social Security accounted for only 39% of the income of people age 65 and older.

The financial assistance that Social Security gives its recipients is indeed helpful during retirement. But at best, it should only be a part of your overall retirement plan.

Taking advantage of retirement investments that are available to you can help you achieve a more comfortable retirement. The sooner you make contributions to a retirement plan, the more time it has to accumulate for retirement.

The Cost of Retirement

Sixty percent of today's workers haven't calculated how much money they think they'll need in retirement. 2

The popular figure is 80-90% of your pre-retirement income.

Just to get an idea of what it will cost to eat, take a look at this:

Contact Judy Mankin * at Agency Associates Financial Services at 317-704-8308 or toll-free at 877-647-2242 to help you determine if what you're saving now is going to be enough to fund the retirement you have in mind.

Inflation

Consider that with just 3% annual inflation over 20 years, the purchasing power of a dollar decreases to just 55 cents. If you live on a fixed income, that means you would only be able to afford about half of what you can now.

And some costs are increasing much faster than 3%. For example, in 2005, the annual increase was closer to 12% for retiree health care costs 3, including:

Prescription medications Home health care Nursing home care Some retirees are understandably cautious about taking on investment risk with their nest egg. But investing too conservatively runs the risk of not keeping pace with expected inflation.

Contact Judy Mankin * at Agency Associates Financial Services at 317-704-8308 or toll-free at 877-647-2242 for assistance to find out if you're on pace to outpace inflation.