As financial planners, we are frequently challenged to assist clients with their retirement plans. Americans are universally attuned to (and afraid of) the potential problem of running out of money while still alive. That was less problematic in the days of lifetime pensions, especially when enhanced with the promise of lifetime Social Security. However, times have changed. Pensions have become scarce, and Social Security is facing hard times ahead.

Employers have mostly transitioned from providing lifetime pensions (Defined Benefit Plans) to 401(k) and many similar Defined Contribution Plans. Today, relatively few Americans can look forward to lifetime income from a private pension (Social Security is essentially a public pension, but that discussion is for another day). Plus, an increasing portion of us are skeptical of Social Security’s continuing ability to pay our promised lifetime benefits, which may be reduced in excess of 20%. That would place further onus on individuals to increase and extend their own retirement income. This option is difficult for Americans to accept.

Preparing for a comfortable financial future must include saving and investing. Long-term personal investing is the most viable method of individual wealth accumulation. Success in long-term investing is largely a function of Asset Allocation, otherwise known as Portfolio Diversification. Everyone is familiar with the old saying, “don’t put all your eggs in one basket,” and with good reason. One dropped basket, and you go hungry.

Due to increasing longevity, a potential retirement period could rival the length of an average work life. Today’s retirees should be wary of the common practice of “becoming more conservative investors” as they approach and enter retirement. Not to say that no changes are warranted for investors as they finish out their careers, but they need to pay attention to the concepts that made them successful.

The Asset Allocation that makes an investor successful during working years should not simply be trashed and replaced. We all need to stay concentrated on what made us successful investors while working. That means allocating resources to last (and grow) for many more decades.

Entertainer James Hubert Blake, affectionately called “Eubie,” was born in 1887, but he preferred to have everyone believe it happened in 1883. Before his death in 1983, he is credited with having said, “If I’d known I was gonna live this long, I’d have taken better care of myself.” Notwithstanding the truth, upon his passing, the “official” record honored his personal preference by accepting the 1883 birth date. Why not? Attaining the age of 100 is an ambitious goal.

Take better care of your financial life while you tend to your health.