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Are You Worried About Money?

Legg Mason recently conducted a survey among affluent individuals with at least $200,000 in investable assets — the average was $385,000 in retirement income plan savings. At an average age of 58, these individuals were close enough to retirement that planning for it weighed heavily on their minds.

How heavy? On average, they worried about money approximately nine hours a week. That’s nine hours they weren’t focused on their work, time that could have been spent getting exercise to help stay healthy or spending quality time with family and friends. The findings were worse for about 10 percent of those surveyed: They worried about money two to three hours each day.

About 72 percent reported their No. 1 retirement goal was to maintain their current lifestyle. Among them, 60 percent were either not confident or only somewhat confident they would be able to retire when they wanted to.

Among their fears, the top three that could prevent them from achieving their retirement lifestyle goals were:

  1. Experiencing a catastrophic event that would deplete their savings
  2. Outliving the income provided by their savings
  3. Living on a fixed income that does not keep pace with inflation

One of the best ways to fight fears is to have a plan. While plans may proceed with varying degrees of success, at least having one tends to help people worry less. According to WebMD.com, setting a specific goal can help reduce the type of stress that accompanies worrying about retirement.1 Once you establish a specific plan for your retirement, you can apply those extra worry-free 475 hours a year to figuring out how to put that plan into action to help you meet your goals.

WebMD.com. “Stress Management – Setting a Goal to Reduce Stress.”http://www.webmd.com/balance/stress-management/stress-management-setting-a-goal-to-reduce-stress. Accessed March 11, 2015.