We are living longer.
No matter what your age, you can expect to live much longer than the generations before you. For example, the typical 65-year old couple today has a 30-year joint life expectancy, meaning there is a high probability that at least one of them will live to age 95. Moreover, there are more people living to the age of 100 than ever before.
This increased longevity has important financial implications.
Obviously, if you’re living longer, your money needs to last as long as you do! Therefore, the first goal of any financial plan should be to avoid outliving your money. We’re not just living longer, we’re healthier and more active than the generations before us. Many retirees participate in recreational activities, get involved in volunteering or even enjoy a second or third career. All of this should be taken into account within your plan.
How you choose to invest your money for the long term could have major implications for your overall success.
The linked Fundamentals of Asset Class Investing provides a wonderful summary of Indexing vs Asset Class Investing…