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farm406 18 farm finance FINANCIAL FOCUS Will Your Money Last as Long as You Do? Michael Plummer - Edward Jones We all hope for long, healthy lives. But there's a serious "side effect" of longevity – the possibility of outliving our money. How can you help prevent this? It's useful to know the seriousness of the threat. Consider this: About 41% of all U.S. homes in which the head of the household is between 35 and 64 are projected to run short of money in retirement, according to the Employee Benefit Research Institute. While this statistic indicates a cause for concern, it doesn't mean you are headed for trouble. ere is a lot that can be done to help build and manage enough resources to last a lifetime. Here are a few suggestions: • Consider your estimated longevity. On average, a 65-year-old man can expect to live another 17 years, while a 65-year-old woman can anticipate about 20 years, according to the Centers for Disease Control. Of course, you'll want to take into account your health and family history of longevity to arrive at a reasonable estimate. You can then use this figure to help determine how much money you'll eventually need. To play it safe, you might even want to try to build an income stream that can last beyond your estimated lifespan, possibly up to age 90. • Don't overlook health care costs. When budgeting for retirement, allow enough for your health care expenses, which can be considerable. Even with Medicare, you can expect to spend anywhere from $4,500 to $6,500 per year, per person, for traditional medical costs. Also, you may want to prepare for two to three years of long-term care expenses, which currently range from about $50,000 per year for home health care to over $100,000 per year for a private room in a nursing home.

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