The Retirement Risk Report Card

The average 65-year-old has a 50% chance of living past 85. A plan for income in your 80s and 90s is not optional.

Do you have an income source that will pay you reliably past age 90, regardless of what the market does?

At 3% annual inflation, your purchasing power cuts in half in 24 years. Income that does not grow loses real value every year.

Does your retirement income have a built-in mechanism to grow over time and keep pace with rising costs?

Retiring into a down market is different from accumulating through one. A major loss in years 1-3 of retirement can permanently impair a portfolio.

If the market dropped 30% in your first year of retirement, would your income plan remain unchanged?

The average nursing home stay costs over $90,000 per year. Medicare covers very little of long-term care.

Do you have a specific plan and funding for long-term care costs?

Tax rates may be higher in the future. Pre-tax accounts are fully taxable at withdrawal.

Do you have a tax-diversified withdrawal strategy across pre-tax, Roth, and taxable accounts?

Without liquid reserves, any unexpected expense -- a car repair, a roof replacement, a family emergency -- forces you to pull from retirement accounts at the worst possible time.

Do you have an emergency fund that could cover 6 or more months of expenses?

Most people overestimate how far their savings will stretch -- or underestimate how much they will actually spend each month once they stop working.

Have you estimated how much income you will need each month in retirement?

If you retire before 65, you need to bridge the healthcare gap. Private insurance can cost $1,000-$2,000+ per month per person.

Do you have a plan for healthcare costs before Medicare kicks in?