Less Than 5% of Americans Will Retire Financially Secure...that's pretty scary, isn't it?

Oct. 19, 2010 - PRLog -- Fort Collins, CO - Why is it that more Americans are not secure in retirement?  If you really boil it down, it can typically be attributed to one of the following areas - even for those that have saved responsibly and kept  a close eye on their budget:

1) Market Volatility - This is a problem that effects people differently relative to age and existing time horizon prior to retirement.  The bottom line is that if a new retiree had an unfortunate sequence of down market returns in the early stages of retirement, it could be disastrous to a retirement portfolio.  The inevitable result of a loss like this will typically leave a retiree with 2 choices:

a) Take less income from the reduced assets with the hope that the market will recover and replenish the market loss

b) Invade the remaining retirement accounts and hope that the money will last for the remainder of the retirement years - an uncertain time frame for anyone without a crystal ball.

2) Rising Costs of Living - What figures do you normally see when inflation numbers are posted in newspapers and on television?  Is it is the mysterious 3% that most of the financial industry is talking about?  It could be argued that the "Real" cost of living will increase by far greater than 3% over time due to some of the following:

- Potentially rising taxes in all forms
- New goods and services available in the marketplace
- General product wear and tear
- Unexpected life events of all kinds including medical issues, children choosing to stay in school during a weak market cycle to earn a higher degree education, etc...

3) Emergencies and a Need for Cash - have you ever been financially embarrassed because you did not have the money available to deal with a specific problem or opportunity?  The way that Americans have managed cash flow in recent years is equivalent to a car driving through a countryside, running on fumes, with no sign of a gas station for miles.  The question is not whether or not the gas will run out, but really when will the gas run out?

4) Health Related Life Events - Would someone that you love suffer financially if you passed away based on your current financial position?  What if you were sick or injured and could not earn an income?  If you were retired and became sick requiring a need for care, are your assets sufficient enough to deal with your issues and still provide your spouse with a lifetime income?

5) Outliving Your Resources - Do you have any idea how long you will live?  How about your spouse?  If you did know how long you were going to live would that influence the way that you used your retirement assets?

The truth is that most people are forced to keep their wealth locked up, taking far less retirement income then they would like to purely based on the fact that do not have the ability to answer the life expectancy question.  It is also largely influenced in many cases by legacy objectives and a strong desire to have liquidity in the event of emergencies and life events such as those metioned above.

These are all issues faced today by Americans (both young and old).

To register up for a free educational webinar  that will go into a detailed conversation around each of this critical issues and how to deal with them, click on the link below:

http://www.health--savings--accounts.com/financialplan.php

.  It will take place on Thursday, October 21st at 9pm EST

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Medigap Advisors has helped thousands of clients with their health insurance needs and specializes in Medicare supplemental insurance and Medicare planning. A wealth of free information may be obtained at www.MedigapAdvisors.com