Don’t You Bet Your Life On It!

This is a famous line, used many times, by the western actor John Wayne. When you think about it, every day we bet our life on decisions we make, from running the yellow light in our automobile, to not reading directions on the medication we might be taking. We of course make many of these split-second decisions, subconsciously, calculating risk every day. When it comes to our financial well-being and risk-manage one rarely thinks about longevity. One does not want to be a 83 year old, feel 73 and have only retirement income for 2-3 years. Don’t bet your financial well-being on expiring early because of the cost of living. The Society of Actuaries (SOA) sponsors a simple life expectancy calculator that shows you the range of possibilities for your life expectancy.

If you’re in your 50s or 60s, you might find that you have another 20 or 30 years to live, maybe even 40 years. But it’s important to understand that your estimated life expectancy is just that, an estimate. More years or less years depends on a number of factors. The SOA calculator doesn’t consider your family history or lifestyle choices when calculating results, so the estimated life expectancies are for the population at large. According to the calculations;

65 year-old women have a 50-50 chance of living another 21 years,

30 percent chance of living another 26 years,

20 percent chance, of living another 29 years to age 94.

65 year-old man have a 50-50 chance of living another 18 years,

30 percent chance of living another 23 years and

20 percent chance of living another 26 years to age 91.

So…the moral of the story is plan on living to 100. The technological advances that were seen in our time, especially in the area of medicine would dictate that we plan on living longer. As an Investment Advisor and Financial Coach we must practice prudence and expect to live to at least 100. The two main areas that concern most Americans, by the way, are income and health care when pondering life expectancy.  If you would like to learn more these subjects, check out our new revamped website for coaching?

Below is a short video sharing some interesting fact about global life expectancy and the impact income.

About Paul Nichols

Paul is the founder of Financial Abundance, a Registered Investor Advisory firm and EDI, an Estate Planning Firm with offices in State College and Lewisburg. He has been working with individuals, families and businesses for over twenty years, including many Fortune 500 companies. He has educated tens of thousands of people through seminars, workshops and various international speaking engagements where he shared the stage with many notable individuals such as Ronald Reagan, Robert Kiyosaki (author of Rich Dad, Poor Dad), Mike Ditka, General Schwarzkopf, and Newt Gingrich to name a few.

In 2000, after many years of traveling to consult companies and individuals, Paul decided to relocate from Colorado to State College, PA (his wife’s hometown) to develop a local advisory firm.

Paul operates under the core belief that education plus understanding leads to clarity and confidence; resulting in peace of mind. He is a proud father of three and devoted husband of 20 plus years.

Some of Paul’s accomplishments:
Regular contributor to the Centre Daily Times, via the “It’s Your Money” blog
Featured in the movie Navigating the Fog of Investing
Regular contributor to Town & Gown as the publications Investor Coach
Host of the weekly iTunes Podcast, It’s Your Money
Member of the Western PA Better Business Bureau
Member of the Centre County Chamber of Business and Industry