|
Retirement Planning... We tend to get so busy in our day-to-day living that few of us take the time to be intentional about what’s really important to us. Relationships, family, health, and financial security are all areas that with intention, we have the power to improve. My focus in this article is on your financial future. More specifically, saving for retirement. Finding Money for Retirement Social Security's assets are steadily being drained… this problem is being exacerbated by the declining ratio of people working (paying into the system) to those who are receiving benefits. It appears obvious that individuals will have to rely more on personal savings when it comes time to retire. Although it is never too early to start planning for retirement, individuals are faced with the challenge of thinking about the long term and adequately preparing for it. It is all too easy to get caught up in day-to-day activities, and postpone thinking and planning for retirement. It has been said that most people spend more time and energy planning their summer vacation than they do their retirement. While it’s never too late, the earlier you begin to plan for retirement, the better. This is because the more time you have to invest, the more you can harness the tremendous power of compound interest over time. – So if you have not done so, the best time to start is now. The major challenge of retirement planning… simply finding the money to put towards it. It can be difficult to find the money to save for retirement, while dealing with the basic costs of living… food, vehicles, children’s needs, school tuition costs, and unexpected expenses. However, sometimes it is the little things in life that can make a big difference. Imagine what would happen if you set aside some of the money you routinely spend on entertainment, going out to dinner, or on “impulse buying”, and instead added this money to your retirement account. It may not seem like you are saving much at first, but the simple sacrifices illustrated in the following examples can really add up over the years and make a very significant difference.
* Savings over 30-years assume a tax-deferred account with a compound annual rate of return of 9%, similar to the historical long-term rate for stocks. Be sure to consult a financial professional, as they will be able to direct and guide you to the retirement savings plans that are the best fit for you. To end up where you want to be at retirement age takes some discipline. First, you need to control spending. Second, you need to make smart investments. Contact me, Laura Dose, for what we call our Mortgage Fitness Check-up. If you own a home, this is an opportunity to evaluate your current equity position, understand your short term and long term goals, and consider options to help you achieve those goals. It may be possible to reduce your current mortgage payment. The savings can be put toward investing in your future and retirement. It may also be possible to take out cash to put toward investments, the purchase another rental property, etc. If you do not currently own a home, feel free to call me to get pre-approved and discuss the best loan options to accomplish your short term and long term goals. I can be reached at (714) 863-0474, or by email laura@lauradose.com I’d be glad to answer your questions Creating a retirement plan, setting personal priorities to find the money to save for retirement, and then having the discipline and commitment to carry through with a plan can make the difference between a successful and fruitful retirement and one of “just barely getting by.” |