"Running out of money in retirement is one of the top fears of soon-to-be retirees for a reason. It is surely one of the nastiest wake-up calls one can get. Not only is it painful to have to return to work after enjoying the first few years of enjoyment, but one may also struggle to land the salary one had before leaving the workforce. Also, there's no guarantee that one will be able to do their job effectively in their golden years."
"That's why retirees who are doubtful about the sustainability of their nest egg should err on the side of caution and get a registered financial planner to give everything a second look. Though being overly conservative with your investments in retirement could limit growth, the important thing is that you've got enough of a cushion to pad the fall if the catastrophic scenario you envision actually ends up coming to fruition."
Running out of money in retirement ranks among the strongest fears because returning to work is painful and may come with a lower salary and reduced effectiveness. High-net-worth individuals also face risk from catastrophic events such as emergency healthcare costs or violent stock market meltdowns. Retirees doubtful about sustainability should err on the side of caution and consult a registered financial planner. Being overly conservative can limit growth, but maintaining a cushion protects against catastrophic scenarios. Retirees should avoid over-extending risk, keep withdrawal rates near 4% or lower, and rebalance portfolios to reduce volatility amid market shocks.
Read at 24/7 Wall St.
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