How can one financially plan for the expected?
"First, envision your retirement lifestyle," said Luis Ponce, Financial Advisor with Edward Jones in Newton. "Do you plan on traveling the world? Or will you stay close to home, volunteering and pursuing your hobbies? Perhaps you'll even work part-time in some capacity."
Once investors know what their retirement might look like, they can put a price tag on it, even if it's only an estimate, they add.
The "unexpected" factors - those variables that will affect one's retirement costs and lifestyle - investors should consider include:
Inflation - Over time, even a relatively mild inflation rate can decrease one's purchasing power and erode the value of investments, particularly the fixed-income ones.
Health care - As one gets older, health care costs almost certainly rise, but the size of this increase is difficult to forecast.
Longevity - One doesn't know exactly how long he or she will live, but longevity will have a big impact on spending and investment decisions during retirement.
"Even when you retire, you"ll need growth potential in your portfolio to cope with inflation and rising health care costs," he said.
For more information visit the Edward Jones website at edwardjones.com.