What are my 4 biggest risks in retirement?

What if I live too long? Clearly this could happen. Most retirement projections go out to 93 to 95. And they show we still probably have a little left. Some of us could live to 100 or longer though. The good financial news here is that we probably won't be as active. We'll probably spend less on travel and other forms of entertainment. Still, let's keep a little in reserve for that possibility.

What if I get sick? This could be a big one. My advice is to pay a little extra now for complete medical coverage. You can afford it today, and it will probably save you big time down the road. See your doctors regularly and follow their advice. It probably wouldn't hurt to lose a few pounds too. Have you ever seen a really old fat person?

What if my family needs money? There's always some pressure from your kids. My advice is that your needs come first. If you can afford to be generous, that's great. You can certainly counsel your family on financial matters. Even introduce them to a good banker? But take care of your needs as your primary obligation.

What if I have to move to a retirement home? Some do. And they are not cheap if you want a good level of comfort and care. Of course selling your home will add money to the pot. But you still might want to have a reserve to cover such a need.

If you've covered those four bases as well as planned to maintain your lifestyle, you are probably in good shape. If it looks like you are cutting it a little too close, something has to give. My suggestion in that case is to reduce your current approach to living by just the right amount to assure you have the adequate reserves you will need.