I recently saw a documentary about The Blue Zones, based on research from Dan Buettner1, who uncovered the secret to living to 100. His longevity study discovered five places around the world where people consistently lived to over 100 years. Based on Dan’s research, he and his team found nine commonalities that these people share that they call the Power 9.
While watching the documentary, I thought about how great it would be to live to 100. Still, as a financial planner, I also thought of the financial challenge of ensuring you have the resources to support yourself financially if you could live to the ripe old age of 100.
So, how do you ensure you have sufficient assets to outlast your lifetime?
- Live within your means – Make sure your expenses do not exceed your income; if income goes down, expenses must be reduced.
- Eliminate debt – Being debt-free can provide peace of mind and reduce expenses. Think no more interest payments means more money in your pocket.
- Create mailbox money– Make investments that provide consistent monthly income with little to no ongoing effort. That way, you still have a revenue stream when you stop working.
- Live off the income from your assets – This goes back to living within your means. Make your assets work hard to provide the highest amount of income possible and live off the income generated.
- Never spend the principal of your assets – Maintaining the value of your assets throughout your lifetime keeps your income stream consistent and can provide backup funding if needed.
- Pay off your mortgage – Your house is one of your most significant assets. Paying off the mortgage provides security and reduces your overall expenses. This also allows you to turn your home’s equity into a supplemental income stream by using a reverse mortgage if needed.
By preparing financially for a potentially long life, you can ensure your resources will go the distance. A long life can be appealing if you can pay for it.
1Dan Buettner The Blue Zones: Lessons for Living Longer from the People Who’ve Lived the Longest – October 19, 2010
Mario Hernandez has been a Certified Financial Planner (CFP) for over 30 years and brings a vast amount of experience in the financial planning and investment management business. Through Longevity Wealth Management, Mario provides holistic planning services that help clients find solutions to live their best life. Mario’s email address is mario@longevitywealthmanagement.com. Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Investment advisory services offered through Longevity Wealth Management. Osaic Wealth, Inc. is separately owned and other entities and/or marketing names, products or services referenced here are independent of Oasic. Certain insurance products are offered by Mario Hernandez as a licensed agent independent of Osaic Wealth, Inc.. Mario Hernandez is not affiliated with Osaic Wealth, Inc. or registered as a broker-dealer or investment advisor.
