A reporter from Financial Planning Magazine, recently posed a question to several financial advisors asking:
“What happens when an elderly retired client runs out of money?”
Below is my response, which was included in the article:
WATCH WITHDRAWAL RATES
Michael Lecours, an advisor at Ohanesian/Lecours in West Hartford, Conn., says the time to address the issue of running out of money with retirees is when they start increasing withdrawal rates from their savings.
“We can see the writing on the wall five to 10 years away,” Lecours says. “After a conversation, most clients recognize the issue and find ways to reduce their expenses. They make plans to downsize, move in with a family member, or scale back on their lifestyle.”