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Speaker 2:
Yeah. So I, I want to start with sort of the three and there was more than, I'm just narrowing it down sort of the three ways that people may underestimate their life expectancy. In other words, they may live longer than you may live longer than you think, and then go into how that relates to inflation and then maybe three ways to mitigate importantly, right? So that's sort of where I want to go. Do you mind fender off for a second? Yeah. How many folks here think that when they them

Speaker 1:
horizon that you're using life expectancy as the target age 90 9,500

Speaker 2:
and hundreds. Great. Okay. We have a very well informed crowd. I don't even know. But if it is interesting because some people definitely do, and when you talk to financial advisers, they have a lot of clients who do underestimate their life expectancy. And I want to start a little quick story. My husband, this was many years ago. It has a beloved aunt j and j was 85 at the time and he said, I don't think she's going to make it much longer. Everybody in her family died before they reached 80 she's got heart disease. They all died of heart disease. She's not gonna make it. I said, well, you know, no. Sure enough today, aunt J and we're going up again at 4th of July. We will see here 4th of July and Christmas, she's 97 I don't think she's going anywhere anytime soon. So that's just one piece. So d there's new medical technology.

Speaker 2:
That's what some of what Bruce talked about, right. That's one thing people can't forget. That's number one. Number two, plan for the end point, not the mid point, which it sounds like everybody hears already doing. You're planning not to just your life expectancy, but what might happen and three, the longer you live, the longer you live because you have survived so far. So your life expectancy keeps extending, which is why our chart is, if you're 65 today and the guide to retirement, what's the chance to get to live to various ages? For example, two in 10 men will make it to 90 or be or beyond is a big circle or beyond. If you get the book and three and 10 women or have a couple almost an even chance. And if you're have higher income and education associated with better health habits and so forth, you know it would be longer, right?

Speaker 2:
So that's because the highest income man will outlive the median income woman actually on average because in the men's narrow the gap as the income goes up. So just if you're a man, don't think, okay, I'm going to die early because all the women are going to take over the world and live longer. And then this relates to inflation because you have a longer runway, longer timeframe to plan for, of course. And then what are the three things to mitigate? And Bruce talked about this a little bit, is it if you want to and can work longer or do some kind of phase retirement if you're able to and not everybody's able to cause some people plan to and then can't. So you've got to have plan B. The plan a may be that extra little bit of income can be tremendously, tremendously helpful if you can get a little more extra work income or even if it is the airbnb or whatever you can do that can really help.

Speaker 2:
That's one what we, we like to say protected income maybe rather than guaranteed and JP Morgan asset management has zero protected income products, but we think for a portion of what you have, and it could be social security, you might have a pension, maybe non deferred compensation and so forth. Like those kinds of things can help. So that can be really important. And I forgot just thinking about the pension, because I can turn part of my money into a pension. And here's how, just an example on the inflation, my pension, if I wait to 70 and a half, is $3,200 when I'm 70 and a half, I will only be able to buy $2,200 worth of purchasing power if we only have 2% inflation for the next 18 years. So it's, you know, you gotta watch out for it can be very career corrosive. That's why these things to mitigate working a little bit longer if you can, having that guaranteed income stream for as long as you live. And I would say third is to write risk your portfolio. You don't want to be all risk right? And the more guaranteed or protected income you have, maybe the more risk you can take. But you need a personal assessment to see how much you, you know, risky. You want to take in the rest of your portfolio and you don't want to sit all in cash because then inflation is going to eat into it. So I think those are three ways to think about mitigating, you know, your, your longevity and inflation risk.

You've been saving and planning for retirement for 30 years, and now that the time has come to retire so you think it's clear sailing ahead, right? Wrong. It's just the beginning. 

That's according to a group of top retirement experts participating in TheStreet's Retirement, Taxes & Income Strategies Symposium.

Beware of Top Retirement Risks was one of the panel discussions at the all-day event, held recently in New York City and moderated by Robert Powell, TheStreet's Retirement Daily editor.

"Mitigating risk is a big part of retirement that often gets overlooked and the two biggest risks to your nest egg are longevity and inflation", according to one of the panelist Sharon Carson, executive director and retirement strategist at JPMorgan.

Watch this panel discussion that including leading actuaries who came up with 15 key risk factors for retirement - and they go far beyond withdrawal strategies to political uncertainty, elder fraud and inflation. 

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Need help preparing for retirement? Check out Retirement Daily.