As if it isn’t hard enough to save for retirement, there are several hazards you should be aware of that could cause your funds to not last as long as you do. I know it would be nice to just wear virtual unreality glasses, but wouldn’t you rather have a road sign warning you that there was a cliff ahead that you should know about? In the financial biz, we call these risks.

Longevity Risks

Life expectancies are increasing. Not only are most of us living healthier lifestyles, but there are medical advancements not the least of which includes 3D bio-printing of human tissues and organs. Doctors can just hoist us up on the rack and replace our parts… as long as our money holds out.

1. Entitlement Risk

The risk that Social Security, Medicare and pension plans may not deliver the benefits you expected. This risk may affect you more and more as you become increasingly responsible for your personal retirement income.

2. Excess Withdrawal Risk

The risk of running out of money because of taking too much out of your accounts each year.

Market Risks

Markets go up and down. While you are still working you usually have the option of riding them out. However, when you are relying on your investment income for retirement, it gets a little trickier.

3. Sequence of Returns Risk

The risk of poor stock and bond market return irreparably harming the amount of money you can take out of your accounts each year

4. Asset Allocation Risk

The risk of not dividing your mix of investments across various asset classes appropriately for your time horizon.

Inflation Risk

Unfortunately a loaf of bread, clothing, doctors, haircuts, manicures, utilities and housing gets more expensive over time.

5. Purchasing Power Risk

The risk of not being able to purchase as many goods and services in the future due to their rising costs

6. Medical Expense Risk

The risk of having to pay uncertain medical expenses later in life. This uncertainty refers to both the timing and size of these expenses

Confiscation Risk

If it isn’t bad enough that you still have to pay taxes in retirement, there are other challenges like death, divorce and kids!

7. Tax Risk

The risk that taxes will erode your wealth at too great a rate and prevent you from having adequate income for life

8. Relationship Risk

The risk that changes in personal relationships, such as with a spouse, business partner or children, will damage the results of any prior or current planning for creating sustainable income for life.