2. Anticipate Inflation and build a hedge against it

Another drawback to retiring too early is the impact of inflation on your fixed income. Of course, money is  always being affected by inflation, yet you certainly feel it more when you’re living on a declining balance.  Many people retire with $1 million thinking they’ll never run out of money. Yet that’s only 10 years of  $100,000 income. If you think about it. 

Consider how far $100,00 stretches today. Then think about 30 years from now. Is it not possible that money  won’t stretch as far? If you spent $1,500 on food and gas with a 4.5% inflation rate, 10 years later it will cost  you $2,329 for the same products. Maybe it will cost you even more. Suddenly, your 10-years of income has  shrunk to five, and that’s not even considering taxes.

Inflation is a killer of your income, so you likely need to save much more than you think you need. By working  longer, you also delay your need to live on a fixed income and create more savings for yourself. It just makes  good common sense.

3. Save More Now Cause it will Cost You More in the Future

This may seem like a no-brainer, but the more you save now, the better prepared you’ll be for the future. If  you’re saving 10%, try for 20%. And if you’re saving 20%, try aiming for 25% or even 30%. Making these simple  changes now, rather than later, can really build momentum. Especially if you save into a well-designed, high grade, dividend paying, whole life insurance policy with an old-time mutual life company, which grows  steadily and securely within your policy. You can use it at any time, AND it has income benefits for you in  retirement that are tax free. 

 “Momma said “Life is like a box of chocolates; you never know what you’re going to get.”” – Forest Gump

While you might want to start investing before you start saving, I strongly advise doing things the other way  around. Saving money gives you a firm foundation and can put you in a better position to invest in later.

4. Expand Your Portfolio, Thinking Without Logic Doesn’t Work

And No, I don’t necessarily mean you should be buying stocks. 

What I mean by this, instead of trying to pay down a lot of debt (like your car or your mortgage), instead think  about what you can leverage to build your asset base. Sure, you might need to save a little at first, but building  your asset base can be a great way to increase your cash flow and your savings. Rather than trying to funnel  any excess money into your mortgage, which you will be paying off with cheaper dollars due to inflation, try  saving it and then using it to invest in something that will add to your future income to sustain your lifestyle.

5. Control Your Money, Leant to Use Other Peoples Money

Typical financial planners will actually try to steer to away from controlling your own money. I have found that  most financial planning is a waste of time and money because they are based on projections and assumptions  that rarely ever come to fruition. Many fail because they are not reviewed on an annual basis. The two most  important documents ever written are the U.S. Constitution and the Bible. Are you writing down your plans? 

Typical financial planners want your money in the hands of someone else, be it their own, or Wall Street’s. It  may even be under the government’s control, like your 401k, 403b, or IRAs. While you might be happy to hand  over the reins, this isn’t always in your best interest. When other people control your money, they could take  unnecessary risks, not to mention all the management fees associated. 

By purchasing and/or investing in assets you control, you get to determine your parameters and what you’re  comfortable with. Whole life insurance and annuities are good examples of assets you can control.

6. Invest in Your Health

Investing in your health isn’t just about living longer, it can also keep your costs down as you age. Many  people experience more health changes as they age, and it can be most expensive when people are living on a  fixed income. I was standing in line at the pharmacy when I saw a lady faint, right there in line, after she read  the monthly bill would be over $800.00.  

By investing in your health early, you can improve your chance of good health in the future, and hopefully,  minimize expenses later in life. 

What seems like an expense now, when it comes to your health, may actually be an investment for later if it  keeps you from racking up major medical bills in your future.

7. Make Your Life Insurance Multitask

If you didn’t know, a uniquely designed, high-grade, dividend paying whole-life insurance policy with an old time mutual life company is the perfect multi-tasking tool. Not only does it provide you with a Death Benefit  that gets paid to your heirs in time of need, but you also have access to some of that Death Benefit while  you’re alive, in the form of Cash Value. Your cash value can be leveraged for anything you want, no questions  asked. You can use it for emergencies, investments, vacations, and most high-grade policies have riders for  long-term care expenses. 

Whole life insurance also comes with the ability to add riders, which are additional benefits that improve your  insurance. Riders are customizable, meaning you can create a perfect policy for you and your family. One rider  we recommend is for long-term care, which makes it possible for you to fund your long-term care, if needed.  

I had a close relative who spent her last 39 months in a nursing home that cost her over $8,000 per month.  Think about the costs. 39 months x $8,000 equals $312,000. How would this situation affect your family.

I have personally experienced being in the nursing home for a month, then spending another month in an assistant living facility. The cost was over $5,200 out of pocket for the month I stayed in assistant living. I thank God every morning and evening that I am alive and well. Life has its way of throwing curveballs at us.

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Another Real-Life Example: Back in 2006, I had a client whose wife had recently passed away and had him promise her that he would give their little country church $500,000 upon his death. He was concerned about doing so for many reasons. $500k can be a lot of temptation for some people to misuse.

He came to me with the question of what the best way would be to accomplish what she wanted, and yet still keep control of his money, as he had heard me preach over the years to always be in control of your money. At the time my fixed indexed annuities were giving a 10% bonus on all money deposited. So, I shared with him how a Charitable Remainder Unit Trust (CRUT) could be the answer he was looking for.

I had him bring me $454,550 to deposit in an annuity with the 10% bonus. We were able to start the CRUT with $500,005 because of the bonus. He was the incomebeneficiary. Meaning he could withdraw up to 10% per year, if needed. He passed away in 2017. Prior to his death he had withdrawn over $226,000 as income, and the account balance on the day that he died was worth over $619,000.

He never had to worry about losing money in the market, paying commissions, or paying management fees. His family controlled the CRUT after his death with instructions to give her church 10% each year until the amount distributed to the church was $500,000 tax free. The balance could be distributed to the family.

In addition, he paid no capital gains on the growth of the CRUT, and he also received a nice tax deduction for giving the gift to the CRUT. What an estate planning tool!

So, Let’s Get Ready for a Long and Prosperous Life.

Living longer is something to celebrate! Yet, it takes planning to be prepared for a long and prosperous life.