If you’re building a financial plan based on the U.S. average life expectancy, you’re likely setting yourself up for a shortfall. Once you hit 65, the "statistical rules" change completely. Today, we break down the math of longevity and share the one tool every investor should use to get a more realistic picture of how long your money will likely need to last in retirement.

Here’s what we’re covering in today’s Clark Smart Investing newsletter:

When it comes to retirement planning, one of the most common mistakes people make has nothing to do with their investment strategy or savings rate. It’s a fundamental misunderstanding of how long they’re likely to live.

If you’ve heard that life expectancy in the U.S. is around 78 years, you might assume that at age 65, you only need to plan for about 13 more years. But that math is completely wrong, and it could leave you running out of money in retirement.

In the full article, we share the real math behind life expectancy in the U.S., how it changes as you age, why it matters for your retirement plan, and how to measure your own longevity to help you make more informed decisions with your nest egg.

Every week, we'll ask a new question to get your take on the latest financial trends and topics.

Last Week’s Poll Results

We asked: “What do you predict will happen with the price of gold?” Here’s how you answered:

In this recurring Q&A, we share questions that have been answered by Clark Howard or Wes Moss on the podcast. Submit your question today!

Ron in North Carolina asks: I invested in a gold ETF and physical bars as an alternative growth asset, and as a hedge against stocks in the event of a major stock correction. With the rise of gold prices, what would happen to the price of gold upon a major stock correction? Do they still hold a low correlation?

Wes Moss says: To understand the value of gold in a portfolio, one must first understand the concept of correlation. A correlation of 1.0 means two assets move in lockstep; if one rises by 10%, the other follows suit. Conversely, a negative correlation of -1.0 means they move in exact opposite directions. Gold, however, essentially carries a zero correlation to the stock market. This doesn't mean it is strictly inverse to stocks, but rather that its movements are independent. While this relationship can be unstable in the short term — meaning gold and stocks may occasionally move together — over long periods, gold acts as a distinct outlier. This independence is precisely what makes gold an effective diversifier. We often see this play out during periods of intense market stress; for instance, during a recent session where the S&P 500 dropped 2% in a single day, gold surged nearly 4%. Because most traditional risk assets tend to be somewhat correlated, they often decline at the same time. Gold’s near-zero correlation provides a necessary cushion, and despite its recent strong performance, its primary benefit remains its ability to behave differently than the rest of your holdings. It's still a good diversifier and just because it's done well lately doesn't mean it's still not a nice diversifier for you.

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

This information is provided to you as a resource for informational purposes only and is not to be viewed as investment advice or recommendations. Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Any company names shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. The views and opinions expressed are for educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market or other conditions. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.