This is a question that surfaces in one form or another in virtually every conversation I have with a client or prospective client. The central point is that no one knows. How’s that for insight?

“Retirement” is that point in your life when you stop working for money and whatever money you have accumulated has to start working for you. If you don’t have any, then you keep working as long as you can.

If you think you have enough, then the question becomes how fast can I take money from the accumulation pile. And the answer depends on how old you are, how long you will live, and what your life costs are. Is your house/home paid for? Do you like to have a new car every couple of years? Do you like to travel and have lots of places to visit around the world? Are your children functioning adults who for the most part can look after themselves without your help?

The problem faced by advisors and clients alike is to try and figure out all the possible variables and come up with a solution that makes sense. And all the while knowing that if forces outside our control conspire against us, we may in fact run out of money before we are ready to go, or forces may work in our favor. Then the possibility emerges that we die sooner than expected with enough money left in the kitty that we could have spent three months every year in the south of France. Or wherever.

The central idea for this post and perhaps for another one or two in the next few days came from an article by a Moshe A. Milevsky. I have no idea where I found it so cannot attribute it properly. But as I age as a financial planner and my clients age, and those who find my skills useful also age, my hope is that whatever emerges here will be helpful.

I’ll provide you with some statistical values that provide you with life expectancy numbers, etc. Then we’ll explore some of the variables. Once you get that far, you then have to overlay that framework on who you are today, who you expect to be tomorrow, and the needs you expect to be resolved with money.

You see, money is only useful if you can use it to buy the things you need and the things you want. Beyond that, it has no significant purpose. These economic times have not changed that dynamic. What has changed is our perception of the future and how we can best deal with these new conditions, all the while knowing that time is running out. My role, and the role played by advisors such as myself is to help you express your concerns, and then try to build a road map using the various elements to increase the chances for your success.

Stay tuned…