A Long Life Is a Blessing...and an Opportunity
Americans are living longer today than any generation prior — one of the most breathtaking human achievements of our age. And with a longer life can come a later retirement age, and more years in retirement. That means your retirement portfolio may have to work as hard as you have over the years — and, ultimately, to live as long as you do. The following considerations can help you make the most of your longevity.
"Invest Early...and Often"
This saying resonates now more than ever as Social Security and pensions take a back seat, to personal savings, as retirement income sources. Importantly, saving for retirement is a lifelong marathon, not a sprint, even in the final 5, 10 or 20 years. Allotting small amounts over time is often much easier to bear than having to play catch-up to reach the retirement income you want later in life.
Target the Future You Want
It can be intimidating to build a diversified portfolio aimed at life's biggest financial goal — retirement. Target-date funds and target-risk funds can help remove some of the guesswork. These multi-asset-class funds come in a variety of flavors, with target-date products geared toward a specific investment time horizon and target-risk funds based on an investor's tolerance for risk (from conservative to aggressive). Explore LifePath® Portfolios for more on our Target Date Fund strategies.
Annuities are important retirement planning tools that can provide a steady stream of income throughout your retirement years. Different types of annuities can offer access to an account value, payments for a specific number of years or predetermined growth potential. Talk to your financial professional about your options.
Remember, Time is on Your Side
Longer life expectancies mean you have the longevity to ride out market cycles, allowing you to consider looking past the traditional retirement products and seek to take advantage of opportunities for enhanced income and growth potential. Investment in equities, commodities and alternatives are some strategies you may consider in seeking to generate income and enhanced return potential to help ensure your long life is a blessing — and not a financial burden.