Financial/retirement expert Thomas J. Drongoski: Biggest threats to a comfortable retirement?

What are your biggest threats to a comfortable retirement?

Consider inflation. It’s been high lately, but even a relatively mild inflation rate can erode your purchasing power. So, after you’ve retired, it may be desirable to own some investments with growth potential.

Another threat is excessive withdrawals from your investment portfolio. You’ll need to find a withdrawal rate that reduces the danger of outliving your money.

Also, be aware of market volatility. When you’re retired, it’s especially important to avoid having to sell stocks when their price has dropped. To help prevent this, you can draw on the cash and short-term fixed income investments in your portfolio.

And you can protect yourself from unexpected expenses, such as a major car repair, if you’ve built an emergency fund containing several months’ worth of living expenses.

Finally, defend yourself against big health care bills by getting the best possible coverage from Medicare or Medicare Advantage. And if you still have money left from a health savings account, you can use it to help pay medical costs.

Retirement can be a pleasant time in your life — and you’ll enjoy it more if you’re prepared for the challenges that face all retirees.

This content was provided by Edward Jones for use by Thomas J. Drongoski, your Edward Jones financial advisor at 973-948-9700.