Retirement Isn’t the Finish Line

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Total payrolls, including all non-farm employment, have inched steadily upward with private job creation leading the way.

Yesterday, MarketWatch reported that women retire with $1 million less than their male counterparts. It makes sense that women would amass less over their lifetimes. Women generally earn less than men even in similar professions. In addition, women are less likely to gravitate toward higher paying math, science and engineering positions. But the biggest reason for disparity is most likely breaks in employment as women tend to be the caregivers for children and elderly or sick relatives. Because women live an average of 4.5 years longer, they will need to save more than men. Most retirement investors both male and female are becoming aware of the need to save early and often. However, retirement is not the finish line. The tricky part comes after retirement in devising a withdrawal strategy. Rules of thumb like the 4% rule are obsolete in this low interest rate environment. Investors needed a customized plan that incorporates individual spending needs, inflation, market volatility and tax strategies and that is quite a challenge.

Meanwhile, the labor market continues to steamroll ahead. The economy added 164k jobs in April pushing the unemployment rate under 4% for the first time since 2000. Please watch the non-farm and ADP payroll reports on page 63 of the Global Perspectives Book.

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